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Mortgage rates bounced back and forth in a relatively tight range before going out at their highest levels of the week last Friday. Although prices of mortgage-backed securities managed to rally of their lows of the day, most lenders did not reprice for the better. Reports from fellow mortgage professionals indicate lender rate sheets to be improved from Friday. The par 30 year conventional rate mortgage does remain in the 4.875% to 5.125% range for well qualified consumers though. When evaluating the risk/reward of floating, you have very little to gain by floating and a lot to risk. We have several high impacting events taking place this week which could pressure mortgage rates higher very quickly. With that in mind, if you need to decide on locking or floating in the next week or are within 15 days of closing, I would lock today. If you have a longer decision making timeline, I am floating on a day to day basis. ...

Reports from fellow mortgage professionals indicate lender rate sheets to be worse than Friday. The par 30 year conventional rate mortgage has risen to the 4.875% to 5.125% range for well qualified consumers.These rates are the most aggressive in the mortgage market, only very well qualified consumers will have access to these borrowing costs. To secure a par rate you must have a FICO credit score of 740 or higher, a loan to value at 80% or less. These quotes also assume the borrower is willing to pay all closing costs including an estimated one point loan origination/discount/broker fee. Your mortgage professional should be able to provide you with a breakeven analysis to determine the optimal fee vs interest rate. If you didn’t follow our LOCK advice from last week, that means you are still floating today. While lenders were likely conservative today, I am still favoring locking in loans. . ...

After holding steady near the top of the current trading range, mortgage backed securities came under selling pressure yesterday afternoon as stocks rallied off intraday price lows. Several lenders repriced for the worse as MBS losses held into to the close. Despite the price decline of MBS and maringal loss of rebate on rate sheets, par mortgage rates are still holding their recent range between 4.875 and 5.125. To remind readers, the price and yield of MBS and treasuries are inversely related. As the price moves higher, the yield or rate moves lower and vice versa. ...