If you were out sick on fickle Friday, congratulations!  You missed quite a bit of frustration. 

Despite weaker than expected labor market data, we had to watch as the morning mortgage-baked securities (MBS) rally faded and an afternoon sell off ensued in the bond market .This erased the modestly optimistic loan pricing improvements that lenders were offering immediately following the report on Friday.  Ah, so typical of the secondary mortgage market's recent behavior. This reaction was totally opposite  to how we would have expected bond yields to behave after a weak Employment Situation Report.  Thankfully, all that negativity was reversed this morning when we came back to the office. And although lenders weren't too giving on their first loan pricing runs, MBS stuck near their price highs into the afternoon hours, and reprices for the better were awarded. (as MBS prices go up, rates go down) .This pushed mortgage rates sliiiiiightly lower...........

The best conventional/FHA/VA 30 year fixed mortgage rates are still in a range between 4.375% and 4.750% for very  well-qualified borrowers.  The best conventional/FHA/VA 15 year fixed mortgage rates are in a range between 3.750% and 4.125%. Best execution on a 30-year fixed loan for a well-qualified, no LLPA borrower is 4.50%.

I know that all sounds encouraging and might even draw a "sigh of relief", but we are still hesitant to get excited about positive progress in mortgage rates. A greater than normal amount of uncertainty is governing the global economic investing environment. Couple that with what is traditionally a "hard to read" time of year (year end on Wall Street), and it makes sense to say.....

"if you're floating your loan on a closing deadline you should meet with your loan originator to indentify  an acceptable payment range and coordinate a short term loan pricing/buydown target based on your specific scenario."

Important Mortgage Rate Disclaimer: Loan originators will only be able to offer these rates on agency conforming loan amounts to borrowers who are have a middle FICO score over 740 and enough equity in their home to qualify for a refinance or a large enough savings to cover their down payment and closing costs. If the terms of your loan trigger any risk-based loan level pricing adjustments (LLPAs), your rate quote will be higher. If you do not fall into the "perfect borrower" category, make sure you ask your loan originator for an explanation of the characteristics that make your loan more expensive. "No point" loan doesn't mean "no cost" loan. The best 30 year fixed conventional/FHA/VA mortgage rates still include closing costs such as: third party fees + title charges + transfer and recordation + escrows (things like upfront MIP (if required), property taxes, homeowners insurance, accrued interest)".