Although our directional guidance givers, benchmark Treasury yields, moved higher today, mortgage rates ended the session in a slightly lower position than yesterday. Unfortunately these modest improvements were not much help in lowering the best execution 30 year fixed mortgage rate.
The best execution conventional 30-year fixed mortgage rate is still 4.875% and the best execution FHA 30 year fixed is still 4.75%.
Important Mortgage Rate Disclaimer: Loan originators will only be able to offer these rates on agency conforming loan amounts to very well qualified borrowers who are have a middle FICO score over 740 and enough equity in their home to qualify for a refinance or a large enough savings to cover their down payment and closing costs. If the terms of your loan trigger any risk-based loan level pricing adjustments (LLPAs), your rate quote will be higher. If you do not fall into the "perfect borrower" category, make sure you ask your loan originator for an explanation of the characteristics that make your loan more expensive. "No point" loan doesn't mean "no cost" loan. The best 30 year fixed conventional/FHA/VA mortgage rates still include closing costs such as: third party fees + title charges + transfer and recordation + escrows (things like upfront MIP (if required), property taxes, homeowners insurance, accrued interest)
The fact that rates have held relatively steady this week is a pleasant surprise considering that low volume holiday trading conditions can create volatility, which not only can move the MBS that dictate mortgage rates, but can also necessitate an increased risk premium "built in" to mortgage rates to accounts for the volatility.
Beyond that, really, not much is left this week other than tomorrow's economic data. Granted there is a fair amount of data that can move the market, but volume is expected to be even lower tomorrow than it was today. So even if lenders are forced to adjust to volatility in the market tomorrow, we won't really get a concrete consensus on the mortgage rates climate until the new year. That's not a new concept around here, but it bears repeating, as it's the reason we continue to suggest that if your outlook for closing is in December or early January, your best bet continues to be to evaluate available rates and fees for something that works for you and dodge any potential volatility between now and the new year.