Mortgage Rates managed to maintain stability seen on Friday, holding steady to very slightly lower today.  It was a quiet day for rates markets during the US session with most of the movement seen during the European trading hours.  Europe has recently been one of the primary long-term motivating factors for US interest rates, including mortgage rates.

Today's market movements were minimal as were the changes to mortgage lenders' rate sheets versus Friday's.  Best-Execution for 30yr Fixed Conventional Loans remained at 3.625% though the closing costs required for those rates fell slightly.

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

The rest of the week is much lighter than normal in terms of the calendar of scheduled events for financial markets.  After enduring several weeks of volatile mortgage rate movements (and mostly in the UP direction), it's fair to hope that we could see those trends subside. 

That said, a bounce back to lower rates is, by no means guaranteed.  In the absence of meaningful data, rates will be driven more by European news and events.  Despite the 2nd day in a row now where rates have held steady to slightly improved, it's too soon to be leaning toward a bounce back to lower rates as opposed to a mere pause before continuing higher.  Friday's article shared some longer term considerations and possibly offers additional perspective (Read More...)

Long Term Guidance: We'd continue to advocate against trying to "get ahead" of current market movements due to the high degree of uncertainty.  The long-term direction of rates has been down, down, down, for the past year.  At some point, this will turn, and when it does, we highly recommend that you're prepared by drawing your OWN line in the sand as to how much rates would have to rise before you lock at a lost.  That's assuming you don't simply lock as soon as you're able.  For those with lower levels of risk tolerance who would consider movements in cost (despite unchanged interest rates) to be significant, or for those within 15 days of closing, or who are purchasing, this certainly favors locking.  We'd also consider that rates remain very close to all-time lows and uncertainty to all-time highs.  This also favors locking.

Loan Originator Perspectives

Victor Burek At Benchmark Mortgages

With Europe back in the spot light, i like floating right now, especially refinances. You always must be more conservative with purchase loans. But be cautious, one headline can move the market, but hopefully the next one moves it in our favor..sure seems like we are owed one.

Julian Hebron, Branch Manager, Loan Agent, RPM Mortgage

Homebuyers must be in contract to buy a home before they can lock a rate. Given the short-term upside rate risks right now, they should lock rates as soon as they get into contract. Refinancers, we've had two days of improving rates after a two week upswing that should serve as a reminder of how quickly things can change. Low rate complacency can be gut wrenching, and this is a good dip to capture.

Bob Van Gilder (BVG), Finance One Mortgage

All is not lost! Continue searching for that missing page 3/5 of your bank statement... The economy is not on a tear. Europe still flounders and the Middle East is well, the Middle East. Have patience and work diligently. Your Originator wants to close your loan at the best possible rate too!

Mike Owens, Partner with HorizonFinancial, Inc.

I'm locking and moving on to the next one. Maybe we will see some improvements, but as everyone has seen, the drops take much more time than the runups. Bleeding has stopped for now. Will the stitches hold or not is the question.

Ted Rood, Senior Originator, Bank Star

Good news is that the bleeding in rates has stopped for the moment. Advising borrowers against planning on rates returning to their prior levels. There has to be a bottom somewhere, and I think last month was it. If you're happy with current pricing, why risk another rapid rate ascent?

Today's BEST-EXECUTION Rates 

• 30YR FIXED -  3.625%
  
• FHA/VA - 3.5% (varies more between lenders than conventional 30yr Fixed)
• 15 YEAR FIXED -  2.875-3.00%
• 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
• 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).