Mortgage Rates moved higher today, falling back in line with Friday's levels, continuing a recent trend of smaller sideways movements around the new 3.625% Best-Execution rate.  Before rates began rising in late July, the Best-Execution levels for 30yr fixed conventional loans were centered on 3.5% with a few instances of 3.375%.  

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

Once again, underlying market events today were relatively silent.  In fact, compared to the usual fare consisting of economic data releases and news headlines that help guide changes in interest rates, the first two days of this week have been almost stone silent, with the remainder of the week not expected to pick up much more.

The interest rate environment remains highly uncertain.  While it's been comforting, in some ways, to see the more aggressive gyrations of previous weeks subside over the past 3-5 sessions, such consolidation is by no means a guarantee that rates are ready to bounce back lower.

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

Seems treasuries have solid support at the 200 day moving average. As long as the 10yr remains under 1.86, i would continue to float. If 1.86 breaks, things could get ugly fast.

Bob Van Gilder (BVG), Finance One Mortgage

Yep, I'm a broken record. Patience is your best friend in this current rate/lending climate.  Patience will pay best returns, whether it's with respect to your loan process or simply waiting for your best opportunity to act. Love your Originator. He/she wants to close your loan too!

Ted Rood, Senior Originator, Bank Star

Rates relatively quiet today, a welcome respite from the frantic pace of the past several weeks. No Euro bombs for the moment, until they start landing on US front pages it's doubtful rates will drop considerably.

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).