On Friday, we talked about how the
Employment Situation Report contributed to higher Mortgage Rates. The
optimism surround the European debt crisis has also been hurting interest rates,
and markets would have needed some very bad news out of Europe in order to
reverse the momentum for higher rates that took shape last week.
nothing reversed that momentum, and rates are significantly higher than last
week. If you’re seeing local or national
news talking about rates in the “high 3’s,“ that info is already out-dated as
Best-Execution rates are now solidly back in the 4’s.
- BESTEXECUTION 30YR FIXED – Up to 4.25%, some variation between lenders
- FHA/VA –
3.875%. Lots of variation between
- 15 YEAR FIXED
- 5 YEAR ARMS – low
to mid 3% range, variations from lender to lender.
New Guidance: If you were floating before the jobs report and are still
floating, rates are almost high enough that you should lock even with the big
loss, but right now we’re just on the edge between two different MBS
coupons. Think of these like the
available “buckets” into which mortgages will ultimately be placed when they
turn into tradable securities on the Secondary Market. This means you can approach the upcoming days
in one of two ways: either rates will continue higher in general, and the
general range of rates would be 4.25-4.75% in terms of Best-Execution, OR we’ve
hit a wall of sorts, and can either bounce lower or hold steady. The more days you wait to determine this, the
more money you’ll lose if the first scenario plays out and the more you’d gain
if the second scenario plays out. If
rates don’t look like they’re holding steady or improving by the end of this
week, we’d be locking everything (and fairly close to that sentiment already,
but feel it’s at least one day too soon to say for sure).