Mortgage Rates Rise Ahead of Three Day Weekend.

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Ongoing moderation of the
Euro-Zone-driven “flight to safety” as well as a weak US Treasury auction today
combined to drag most domestic interest rates a bit higher, including Mortgage Rates. 

Many lenders’ Best-Execution levels
are an eighth of a point higher in rate today, moving from 4.0 to 4.125%
although both quotes still exist.  Other
lenders’ movements were limited to changes in closing costs, but either way,
things are more expensive today

Today’s BEST-EXECUTION Rates

  • 30YR FIXED –  
    Straddling 4.0% and 4.125%
  • FHA/VA 
    3.75- 3.875%
  • 15 YEAR FIXED – 
    3.375%-3.5%
  • 5 YEAR ARMS –  low
    3% range, huge variations from lender to lender.

Previous Guidance (offered as
background to today’s new guidance):
Rate
offerings from lenders over the past month have been like a temperamental
pitching machine in a batting cage-generally getting the ball across the plate,
but with no really juicy pitches.  But recently, we’ve seen some more
consistently good pitches (best-ex around 4.0% instead of 4.25%).  Sure…
you’ve seen better, but not by much (3.875% and RARELY 3.75%).  How
many more will you count on before calling it a day? 
Personally, I’d
like to end my batting cage session with a nice hit.  The more
“pitches” you wait for with rates already at a 4.0%, the greater the
risk that the next pitch will be a curveball.  To drop the metaphor,
although rates this low CAN go slightly lower, the improvements are fairly
minimal compared to how much higher they could go.  Still, if you’re not
in any particular need to refinance and are operating on a longer-term
perspective, we continue to feel good about that “wall” at a 4.25%
best-execution level as a good stop-loss point for inclined floaters.  Ask
us to explain more about that if it doesn’t make sense.  .

New Guidance: In
terms of the batting cage metaphor, the pitches are getting pretty ugly.  Only another eighth or so until they become
unhittable.  If you’re looking at the
same rate quote today as you were yesterday with the only change being in
closing cost, we’d lean toward locking, especially heading into a 3 day weekend
for bond markets where European headlines could result in drastically different
rates by Monday.  Risk-takers might wait
it out to see if the previous “wall” at 4.25% can hold up to a second assault
(assuming rates rise again next week), either locking at a loss if things do
get worse or capitalizing on the bounce back if they don’t.

 

Article source: http://www.mortgagenewsdaily.com/consumer_rates/235793.aspx

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