rates rose slightly on Tuesday, even though financial markets were fully closed due to Hurricane Sandy. The market closure meant that there was no trading on the secondary mortgage market, but most lenders remained open, and released rate sheets accordingly.
Without indications from MBS (the Mortgage-Backed-Securities that most directly influence rates), there was no unified theme among lenders, though perhaps a bit of "uncertainty premium." Some rate sheets were unchanged from Friday's while others barely budged from yesterday's much-improved levels, though some lenders were markedly weaker. On average, the change over yesterday's offerings is merely an adjustment to cost/rebate for the same note rates. That means that the Conventional 30yr Fixed Best-Execution rate remains intact at 3.375% (Read
More:What is A Best-Execution Mortgage Rate?).
Loan Originator Perspectives
"I think until the markets are up and can fully digest the ramifications
of Hurricane Sandy, lenders will price less aggressive. I would give it a
few days to lock as you might see thin volumes being traded tomorrow.
Good luck! " -Tim Elkins, CEO, Crossline Capital.
"I think Sandy is going to create huge mess in the month of Nov and
beyond for borrowers in the NE. Clean up is one thing, but
re-inspections are going to delay $billions in closings. Rates will
have to extended and extra costs incurred by borrowers. One big
headache.... " -Mike Owens, Partner with Horizon Financial, Inc.
Today's Best-Execution Rates
- 30YR FIXED -3.375%
- FHA/VA - 3.25% (varies more between lenders than conventional 30yr
- 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
- 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
- (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).