Today’s much anticipated Summit in
Europe sent Mortgage Rates very slightly higher, but
overall, the changes were minor, especially when compared to the speculation
surrounding the event. But rates aren’t out of the woods yet in terms of uncertainty and volatility.
Lenders are more stratified in their
offerings today vs yesterday, but Best-Execution remains at 4.125% on average,
but in some cases, your quote today could be an eighth higher.
- BESTEXECUTION 30YR FIXED – Mostly 4.125%. Some 4.25’s.
- FHA/VA –
3.75% / 3.875% healthy mix
- 15 YEAR FIXED
– Mostly 3.5%
- 5 YEAR ARMS – low
3% range, huge variations from lender to lender.
Guidance: Unfortunately the “scariness” associated with events in
Europe isn’t quite over yet in terms of the volatility it could cause for
mortgage rates. There’s more Euro-drama
that could yet unfold, and the additional layer of risk from domestic economic
data tomorrow and Friday. We still feel
optimistic about 4.25%’s ongoing ability to stick around, but the volatility is
still scary enough to favor locking even though we’d probably be feeling more
floaty without that volatility in place. The possibility that rates get
lower in spite of the increased disposition to lock is part of the frustration
of dealing with volatility. But better safe than sorry.
(Keep in mind, if a scenario is
anything other than flawless in every way, a note rate can certainly be over
4.25% these days. Read the disclaimer at the bottom of the post if you
need more clarification).