Mortgage rates continued falling this morning despite stronger-than-expected economic data.  The trading session was punctuated by an early closure for bond markets owing to Hurricane Sandy and will be completely closed tomorrow.

The secondary mortgage market began the day in stronger territory after European and Asian hours combined to gradually bring yields lower overnight.  Things didn't move much during the shortened domestic hours and the mortgage-backed-securities (MBS) that most directly influence mortgage rates ended the day in line with their opening levels. 

When combined with Friday afternoon gains, the market-based improvements were enough for lenders to offer significantly improved rate sheets today with Conventional 30yr Fixed Best-Execution for most lenders back down to 3.375% after edging up to 3.5% last week (Read More:What is A Best-Execution Mortgage Rate?).  Not all lenders released new rate sheets today and not all lenders offered the ability to lock.  This will likely be the case as well tomorrow. 

Loan Originator Perspectives

"No word from our investors yet on early closings today/tomorrow, but wouldn't be surprised if it happened. Ironic that best pricing in several weeks comes at a time that most folks are (rightfully) more focused on Sandy and/or the election. Remains to be seen whether the improvement will carry over to later this week, but the fundamentals (diminished earnings, European angst, fiscal cliff uncertainty) haven't changed, nor are they likely too anytime soon! " -Ted Rood, Senior Originator,

"Quiet on rate updates from our own lock desk and those of our investors ahead of Sandy. Rates are indeed improved from Friday, and floating into weekend was a good bet, revealing better opportunities for borrowers today. " -Julian Hebron, Branch Manager, Loan Agent, RPM Mortgage.

"No weather-lock desk closings in the midwest, so hopefully business as usual. Good improvements today, rate-wise. We'll see if these levels hold." -Jeff Statz, Mortgage Advisor, Inlanta Mortgage.

Today's Best-Execution Rates

  • 30YR FIXED -3.375%
  • FHA/VA - 3.25% (varies more between lenders than conventional 30yr Fixed)
  • 15 YEAR FIXED -  2.875%
  • 5 YEAR ARMS -  2.625-3.25% depending on the lender

Ongoing Lock/Float Considerations

  • Rates and costs continue to operate near all time best levels
  • Rates could easily move higher or lower, but given the nearness to all time lows, there's generally more risk than reward regarding floating
  • This will always be the case when rates operate near all-time levels, and as 2011 showed us, it doesn't always mean they're done improving.
  • (As always, please keep in mind that our talk of Best-Execution always pertains to a completely ideal scenario.  There can be all sorts of reasons that your quoted rate would not be the same as our average rates, and in those cases, assuming you're following along on a day to day basis, simply use the Best-Ex levels we quote as a baseline to track potential movement in your quoted rate).