Mortgage Rates are slightly improved from yesterday.  A busy morning of economic data plus several headlines out of Europe caused some volatility in the broader markets, but Mortgage-Backed-Securities (MBS) were less volatile by comparison, allowing lenders to improve rate sheets a bit.  In some cases, among some lenders, Best-Execution dropped an eighth of a point today, while the improvements will be manifesed simply as lower closing costs at other lenders. 

Today's BEST-EXECUTION Rates

• 30YR FIXED -   More centered on 4.0% again, but still plenty 4.125%
• FHA/VA - 3.75- 3.875%, leaning back toward 3.75% today
  
• 15 YEAR FIXED -  3.375%-3.5%
• 5 YEAR ARMS -  low 3% range, huge variations from lender to lender.

Guidance: If you read the "slightly less emphatically in favor of locking" commentary from last night as some sort of endorsement to float, then cash in those gains by being more in favor of locking today.  The reason for this is easiest to explain by equating it to a pretty good pitch from the batting cage metaphor below.  Victories are small and incremental in this market.  Take 'em when you get 'em.

The pitching machine/batting cage: Rate offerings from lenders over the past month have been like a temperamental pitching machine in a batting cage-generally getting the ball across the plate, but with no really juicy pitches.  But recently, we've seen some more consistently good pitches (best-ex around 4.0% instead of 4.25%).  Sure... you've seen better, but not by much (3.875% and RARELY 3.75%).  How many more will you count on before calling it a day?  Personally, I'd like to end my batting cage session with a nice hit.  The more "pitches" you wait for with rates already at a 4.0%, the greater the risk that the next pitch will be a curveball.  To drop the metaphor, although rates this low CAN go slightly lower, the improvements are fairly minimal compared to how much higher they could go.  Still, if you're not in any particular need to refinance and are operating on a longer-term perspective, we continue to feel good about that "wall" at a 4.25% best-execution level as a good stop-loss point for inclined floaters.  Ask us to explain more about that if it doesn't make sense.  .