Compared to yesterday, today’s mortgage rates are a moving target depending on the lender. Some are better. Some are worse. On average, rates are unchanged from yesterday’s latest rate sheets. The variability has to do with yesterday’s fairly sharp losses in bond markets (which dictate rates).
Lenders respond to that type of weakness in different ways. Some of them adjusted rate sheets aggressively yesterday. Those lenders are less likely to be showing higher rates today (because they already accounted for the market movement yesterday).
Other lenders ended the day yesterday without fully adjusting their rate sheets to reflect the losses. Those lenders are more likely to be showing higher rates today.
4.25% remains the most prevalently-quoted conventional 30yr fixed rate for top tier scenarios.
Loan Originator Perspective
Bonds bounced back today, recouping the lion’s share of yesterday’s losses. Treasury yields are establishing a range from 2.38% to 2.42%, and are now approaching the bottom of that range. I don’t know where we go from here, but glad we halted the sell-off in a day. Since we’re near treasuries’ recent low yields, floating borrowers need to be careful here. Remember, pigs get fat, but hogs get slaughtered! –Ted Rood, Senior Originator
Today’s Best-Execution Rates
- 30YR FIXED – 4.25%
- FHA/VA – 3.75-4.25%
- 15 YEAR FIXED – 3.5-3.625%
- 5 YEAR ARMS – 2.75 – 3.25% depending on the lender
Ongoing Lock/Float Considerations
- Some investors are increasingly worried/convinced that the decades-long trend toward lower rates has been permanently reversed, but such a conclusion would require YEARS to truly confirm
- Still, it would take something very big and unexpected for rates to make a big, sustained push back toward pre-election levels. Even then, it would take time to confirm such a shift.
- With fiscal and monetary policy paths both clearly putting pressure on rates, at least one of those would need to make a noticeable change before anything but a cautious, lock-biased approach makes sense as a baseline strategy. Floating should only be considered as a tactical opportunity to capitalize on temporary corrections.
- Rates discussed refer to the most frequently-quoted, conforming, conventional 30yr fixed rate for top tier borrowers among average to well-priced lenders. The rates generally assume little-to-no origination or discount except as noted when applicable. Rates appearing on this page are “effective rates” that take day-to-day changes in upfront costs into consideration.