Unlike yesterday's uneventful market movements, Mortgage Rates are noticeably improved today.  While volume remains quite light in general due to a lack of participation on this holiday-shortened week, things were somewhat busier than yesterday in terms of the level of activity on the Secondary Mortgage Market. 

For some lenders, by the time they released their first rate sheets of the day, the rally was already underway.  As such, most of those lenders simply began the day with strong pricing.  Other lenders who released rate sheets earlier in the morning offered mid-day price improvements.  By the end of the day, most lenders look to be remaining at a 3.875% Best-Execution rate with the improvements being seen primarily in terms of required closing costs.

MBS (the "mortgage-backed-securities" that most directly influence mortgage rates) rallied by default as they did their best to keep pace with a general rally in the longer-maturity end of bond markets.  That broader rally was essentially driven by European events and magnified by the low volume.  In other words, taken at face value, today's news and data would not normally have resulted in the same level of market movement on a more active trading day.  When volume is as low as it is, fewer people (and fewer dollars) are required to move market levels such as stock indexes, bond yields, or MBS prices.

Today's BEST-EXECUTION Rates

• 30YR FIXED -  3.875%
  
• FHA/VA -3.75%
  
• 15 YEAR FIXED -  3.375%
  
• 5 YEAR ARMS -  2.625-3.25% depending on the lender
  

Lock/Float Considerations

The ongoing low volume environment through the new year still constitutes more of a risk than a benefit as far as Mortgage Rates are concerned.  Low volume greased the skids for bond markets--and mortgage rates--to improve today, but that phenomenon is a two-way street.  There's really no way to know what lies ahead in the remaining two days of the week.  That said, we don't necessarily think rates are destined to move higher in the short term, simply that current volume levels make for increased situational risk, especially  with rates about as low as they've ever been.