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The relentless mortgage rate rally continued yesterday. Lenders were seen offering the most aggressive loan pricing of our lifetime, again, as stocks extended their losing streak and risk-averse investors piled funds into government guaranteed U.S. Treasuries. High demand for risk free has bonds led mortgage-backed security prices to record prices, allowing lenders to price mortgage rates at the lowest rates reported since the formation of the secondary mortgage market. Lender rate sheets were priced slightly less aggressive today, but total consumer borrowing costs are generally unchanged. The par 30 year conventional rate mortgage remains in the 4.375% to 4.625% range for well qualified consumers. There are a few lenders offering 4.25%, but borrowers would have to pay up to 2 points to obtain that quote. ...

Following the release of much better than expected 4th Quarter GDP, mortgage-backed security prices fell. This forced lenders to move mortgage rates slightly higher early on in the day. That didn't last long though. Around lunch time MBS prices began to improve. After the lunch hour, momentum picked up and lenders started repricing for the better. The par 30 year conventional rate mortgage rate ends the week in the 4.75% to 5.125% range for well qualified consumers. While I am not totally against floating over the weekend, I still can't provide enough justification to ignore currently aggressive mortgage rates, especially after lenders repriced for the better this afternoon. ...

Reports from fellow mortgage professionals indicate the par 30 year conventional rate mortgage has risen to the 5.00% to 5.25% range for well qualified consumers. To secure a par interest rate you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point loan origination/discount/broker fee. You may elect to pay less in fees but you will have to accept a higher interest rate. This is a good strategy for consumers not planning on keeping their home for more than 3 years. Even if you plan to sell in the next 12 to 24 months, you should look into a refinance where you pay no closing costs. The rate will be about 1% higher than par but if you can do a no cost to you loan and lower your mortgage rate by even a .25% why not do it? As always, consult with a mortgage professional who can give you multiple options and help you pick the most ideal scenario for you and your family. The economic outlook is extremely uncertain. The bond market reflects a bias towards higher rates in early 2010. If you are looking for FLOAT/LOCK advice.... ...

Mortgage rates were were unchanged for the most part yesterday as prices of mortgage-backed securities held to their recent range. Following Monday’s light volume trading session which pushed MBS prices to levels not seen in months, trading volume picked up yesterday and MBS were able to hold onto the gains. Today is the final day of the third quarter, so we will be more optimistic if the topside breakout holds when the fourth quarter begins tomorrow. ...