After closing out the previous week with slight gains Mortgages Rates have done the same to begin the current week.  On average, this brings rates to their best levels since late February, however, rates were in similar territory on Tuesday 4/10.  The late February levels in question contained all time mortgage rate lows.

Any time we talk about "lows" or "best levels," it's important to keep in mind that we're constantly assessing BOTH the interest rates AND the costs associated with them.  In actuality, the interest rate you'd be quoted today may very well not be different from what you would have been quoted on Friday, although the lender's costs are likely somewhat lower. 

The consideration of both RATES and COSTS is central to our determination of a "Best-Execution" rate, which can generally be thought of as the most efficient combination of payment vs. costs.  Today, the Best-Execution rate for 30yr Fixed Conventional Loans remains at 4.0% for many scenarios and is increasingly available at 3.875% for some scenarios.

 (read more about Best-Execution calculations).  

Last week we noted a relatively indecisive attitude in the markets that underlie mortgage rate movements.  From Friday's commentary:

We're generally viewing next week as relatively inconsequential in the big picture given that the following week includes the next FOMC Announcement (you know... where the Fed puts out their official statement every month and a half or so...).  We could certainly see some level of improvement or deterioration in mortgage rates, but there's greater potential for bigger moves in the following week.  Keep in mind that "less volatile" and "less consequential" don't connote an absence of risk.  Unexpected market-moving headlines can happen any time.

This was evident today as markets reacted more to general concerns over the Spanish debt situation (some point to Spain as the next Greece) than to the stronger-than-expected Retail Sales report out this morning. 

Once again, we want to be very careful about making any sort of assumption of stability in financial markets.  There's no way to guarantee that this will continue to be the case this week.  Whatever happens though, it does seem increasingly possible that markets are most focused on next week's FOMC, while still keeping an eye out for European concerns and to a lesser extent, any major surprises in this week's economic data. 

Today's BEST-EXECUTION Rates 

• 30YR FIXED -  3.875%-4.0%
• FHA/VA -3.75%
• 15 YEAR FIXED -  3.125-3.25%
• 5 YEAR ARMS -  2.625-3.25% depending on the lender

Ongoing Lock/Float Considerations 

• Rates and costs continue to operate near all time best levels
• We've recently spent time further away from the very best levels of the past few months having broken away from a long, stable trend.
• That led us to expect greater volatility, and indeed we got it!
• But now that volatility MIGHT be depositing us back in a sideways range near all-time lows
• Rates could easily move higher or lower, but given the nearness to all time lows, there's generally more risk than reward regarding floating
• (As always, please keep in mind that our talk of Best-Execution always pertains to a completely ideal scenario.  There can be all sorts of reasons that your quoted rate would not be the same as our average rates, and in those cases, assuming you're following along on a day to day basis, simply use the Best-Ex levels we quote as a baseline to track potential movement in your quoted rate).