Mortgage Rates were very slightly lower in most cases today though many lenders held relatively steady and a minority were higher.  That makes today the 2nd lowest day in the history of mortgage rates behind 7/23.   Best-Execution for 30yr Fixed Conventional loans remains firmly at 3.5% with some lenders arguably at 3.375%.  To be clear, lower rates are available and viable in some cases, but in general, 3.5% is still the best combination of rate and fee at most lenders (assuming 100% ideal scenarios)

(Read More:What is A Best-Execution Mortgage Rate?)

The same tune keeps playing out in the markets that underlie mortgage rates.  Overnight news and trading during the European hours have done the most to inform domestic trading levels, particularly in the bond markets that play host to Fixed-Income investments such as US Treasuries and the Mortgage-Backed-Securities that most directly influence lenders' rates. 

Like yesterday, the tone out of Europe led rates higher overnight with the balance of the session spent bringing them back down again.  However, the difference between the highs and lows in bond markets today was very small.  10yr Treasuries, for instance stayed mostly between 1.42 and 1.40 since 9am.  That's really an uncannily small range when you consider that we're resting on all-time lows, so calm in fact, that it's tempting to conclude that markets are gradually growing more and more comfortable with the idea of these historically low levels.

Long Term Guidance: We'd continue to advocate against trying to "get ahead" of current market movements due to the high degree of uncertainty.  In the past, we would have interpreted that advice as a suggestion to lock, but in the recently "low and sideways" environment, it's probably better-read as a suggestion to go with the flow of gradually lower rates until we see the pattern definitively break.  It's a reasonably safe assumption that European concerns will generally continue to apply downward pressure on rates although there are no guarantees that the right piece of news or economic event couldn't mark "the turning point" at which rates bottom out.  On any given day, rates have been at or near all-time lows and in the grand scheme of things, unable to move lower as quickly as Treasuries for example.  So although there is potential gain from floating, it's still a historically excellent time to lock if you'd prefer to take the risk off the table.  

Loan Originator Perspectives

Ira Selwin - Vice President of Secondary Marketing - US Mortgage Corporation

I still recommend floating, but be cautious, and be ready to call your loan officer to lock. Remember, investors/lenders don't owe anyone, as they are dealing with high hedge costs right now.

Victor Burek at Benchmark Mortgage

There are always risks when floating. So float at your risk. That said, my float boat is at sea with all loans closing in more than 15 days. Loans closing in under 15 days are locking.

Brett Boyke, Senior Mortgage Banker, Wintrust Mortgage

A little breather today from the march downward in rates, not a bad thing in the long run. Locking is still the smart money play.

Jason York, Vice President of VA Operations at Prime Mortgage Lending, Inc

I firmly believe that once you lock, it is best to not look at rates any more. Keep an eye on things from a distant, but don't check daily like you probably have been. If you lock in at all time lows, what is there really to lose? Sure, it could get very slightly better, but there is a better chance at things getting worse. If we have a huge breakout, most lenders will allow you to adjust your rate down if the market moves .25% lower. However, if you don't lock at the current lows, and things get worse, you can't go back and ask for yesterday's rates!

Mike Owens, Partner with HorizonFinancial, Inc.

Rates are excellent and getting greedy, as I've heard others say, is really a wise thought to point out. Now we're to the point of bragging rights with neighbors about who got the lowest rate. I love that rates are at all time lows, but we are also one day closer to the overnight jump. Floating takes guts in my opinion and I always advise to lock. Floating just causes worry and loss of time. Plus, if you are floating and the panic button needs to be pushed to lock, it may be too late. Rates have jumped 1/2 point almost overnight before and it could happen again. My advice is lock and be happy.

Today's BEST-EXECUTION Rates 

• 30YR FIXED -  3.5%, Some Approaching 3.375%
  
• FHA/VA - 3.25-3.5% (varies more between lenders than conventional 30yr Fixed)
• 15 YEAR FIXED -  2.75 - 2.875%
• 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
• Current levels have experienced increasing resistance in improving much from here
• Rates could easily move higher or lower, but given the nearness to all time lows, there's generally 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.
• (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).