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Lender rate sheets were slightly worse than yesterday but nothing monumental. The best par 30 year fixed -conventional, FHA and VA- mortgage rate remain in the 4.25% to 4.50% range with several lenders offering 4.125%. 15 year fixed rate loans also remain in the 3.75% to 4.00% range. ...

Mortgage rates rallied to new all-time lows yesterday following a few disappointing housing headlines. While it has been no secret to housing industry professionals, the post-homebuyer tax credit hangover appears to have caught some folks on Wall Street off-guard. Stocks sold off, interest rates rallied and lender rate sheets were the most aggressive we've ever seen them. I locked all the loans in my pipeline. Did the consumer borrowing cost rally extend another day?...

Stocks rallied all day long before closing at the highs of the session. This resulted in another investor exodus from risk averse assets which sent benchmark debt yields higher and drove mortgage-backed security prices lower....and lower...and lower. Lenders repriced for the worse and mortgage borrowing costs took one on the chin. MBS prices are now well-below recently hit record highs. ...

Even though economic data was WORSE THAN EXPECTED this morning, which usually benefits the fixed income sector and mortgages, interest rates continue to take their directional guidance from stocks. Specifically, when stocks rise, mortgage rates rise. When stocks fall, mortgage rates fall. Well stocks rallied big time today, lenders repriced for the worse, and mortgage rates rose for the second day in a row....

With rates at the best levels of the year, I continue to advise locking all loans closing within 30 days and also encourage you to consider longer term locks if your loan is closing beyond 30 days. Stocks have been the primary influence over mortgage rates lately, if stocks rally, mortgage rates will rise. On the other hand, if stocks sell off, lenders have proven they are unwilling to push mortgage rates lower than current levels. With that in mind I do not see enough reward to justify floating in this environment. ...

Lender loan pricing is ever so slightly improved today. An afternoon MBS rally allowed a few lenders to reprice for the better as well, but overall mortgage rates are pretty much the same as yesterday. Reports from fellow mortgage professionals indicate the par 30 year conventional mortgage rate continues to hold in the 4.875% to 5.125% range for well qualified consumers. To secure a par interest rate on a conventional mortgage you must have a FICO credit score of 740 or higher, a loan to value of 80% or less and pay all closing costs including an estimated one point loan origination/discount/broker fee. You may elect to pay less or no fees, but you will have to accept a higher interest rate. No cost loans are in the 5.375% to 5.50% area. I still favor locking all loans closing within the next 30 days as the strategy of “lock the price highs, float the price lows” continues to be successful. ...

Benchmark Treasury yields rose and mortgage-backed security prices fell after the market received mostly positive economic data on the manufacturing sector. Consequently lenders pushed mortgage rates a few basis points higher this morning. However, as the day progressed both Treasuries and MBS recovered from their weakest levels. This allowed lenders to erase early morning rate sheet pricing reductions. Reports from fellow mortgage professionals indicate lender rate sheets to be about the same as yesterday. ...

Reports from fellow mortgage professionals indicate lender rate sheets to be considerably worse than yesterday. The par 30 year conventional rate mortgage has risen to the 5.00% to 5.25% range for well qualified consumers. Hopefully you have followed my advice on locking… if so, well done. If you didn’t, the damage has been done and lender rate sheets reflect it. I feel at this point it might be worthwhile to float through the Employment Situation Report tomorrow morning. This is a risky strategy as a better than expected non-farm payroll report will cause rates to rise and, as you know, mortgage rates rise faster than the fall. If you want to remove all risk, nothing wrong with locking a 30 year fixed rate mortgage in the low 5’s. ...