After a series of gains that brought mortgage rates back within striking distance of all time lows, things have worsened just slightly today.
The losses were fairly contained and in many cases, best execution may not have changed for you, simply the closing costs required to get the rate.
- BESTEXECUTION 30YR FIXED – 3.875-4.125%, mostly 4.0%
- FHA/VA – 3.75-3.875%
- 15 YEAR FIXED – 3.375%, still some 3.5’s
- 5 YEAR ARMS – low 3% range, huge variations from lender to lender.
Today’s Guidance: Today’s losses were minimal enough that you should approach locking and floating exactly the same as yesterday provided you’re still being quoted the same note rate. In other words, if you can absorb the increased upfront costs, but can keep yesterday’s rate, we’re still very much in favor of locking. This IS NOT because we’re planning on or have reason to believe that rates will get worse tomorrow, simply that there’s potential for scheduled and unscheduled events to take the market in either direction, quickly. The magnitude of the risks heading into tomorrow generally outweigh the benefits from floating considering our nearness to all-time low rates. At a 4.0% best-execution level, rates have only ever been an eighth and at fleeting moments, two eighths lower than they are today.