Mortgage Rates took the day off from the faster-paced improvements seen yesterday, and instead improved only in small amounts.  Even then, nothing has been changing as far as the actual Best-Execution rates are concerned as improvements have been limited to borrowing costs.  What that means is that although you're likely to see the same interest rate atop Good-Faith-Estimates today, the closing costs required by the lender to obtain that rate are, on average, very slightly lower today.

Although it wasn't to the same extent as yesterday, some lenders released improved rate sheets in the middle of the day as underlying MBS (mortgage-backed-securities) markets generally improved as the day wore on.  Once again, the MBS rally merely took cues from broader bond markets and maintained its positivity due to the extremely low volume that has been pervasive this week.   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

This is basically "it."  While similar rate sheet offerings could prevail through tomorrow, we're now in the last 24 hours of 2011.  Many market participants have been absent and the day to day trading that governs mortgage rates may consequently not have been an entirely accurate portrayal of where things would be were the rest of the players back in the game.  That will quickly change next Tuesday, and hopefully it leaves rates right where they are (or better).  There's really no way to know for sure.  We don't necessarily think rates are destined to move higher in the short term, but would also point out that they continue to be effectively as low as they've ever been, and both technically and fundamentally have had a hard time getting more than .125% lower.