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Reports from fellow mortgage professionals did indicate lender rate sheets to be improved this morning, however several lenders repriced for the worse around mid-day. This keeps the best par 30 year conventional mortgage in the 4.875% to 5.125% range for well qualified consumers. I continue to favor locking over floating. There are too many unknowns in the near term. We have the end of the MBS purchase program by the Fed today, more treasury supply coming tomorrow and non farm payrolls on Friday. Even if all these events go in our favor, at best mortgage rates might dip 0.125%. If these events go against us, mortgage rates could rise very quickly. Way too much to risk with very little to gain. The only loans I would consider floating would be ones that are a day away from locking on a shorter time frame which does give better pricing but I am a little reluctant to even float those. ...

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.... ...