Mortgage Rates have been operating in the 3.875% best-execution range for several weeks now with the only day-to-day variations being seen in the area of closing costs.  That continues to be the case today and in fact, at many lenders closing costs associated with the 3.875% best-execution levels have fallen in line with their lowest levels ever--truly a fitting end to 2011.

Today's BEST-EXECUTION Rates

• 30YR FIXED -  3.875%, glimpses of 3.75% at the top few lenders.
  
• 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 "it."  In a few minutes, bond markets will be closed for 2011 and won't begin trading again until next TUESDAY (that means that you won't hear from us on Monday).  The lock/float considerations are essentially the same as they have been.

• Rates and costs continue to operate near all time best levels
• Current levels have experienced increasing resistance in improving much from here
• There are technical reasons for that as well as fundamental reasons
  
• Lenders tend to get busier when rates are in this "high 3's" level and can throttle their inbound volume by raising rates or costs.
• Trading sentiment in early 2012 could vary from the low-volume positivity seen here at the end of 2011. 
  
• While we don't necessarily think rates are destined to go higher, given the above facts, there seems to be more risk than reward regarding floating
• But that will always be the case when rates operate near all-time levels, and as 2011 showed us, it doesn't always mean they're done improving.

From the MND Family to yours, we thank you for a great 2011 and wish you a merry and prosperous 2012.  Happy New year!