Mortgage rates were sideways to slightly higher today, depending on the lender.  The underlying bond market (which dictates rates) was exceptionally quiet.  On the heels of last week's important events and without much on the calendar this week, markets may take a couple days to relax. 

To put that in context, rates have been holding somewhat steady just below long-term highs.  Their next major decision will be between pushing into new long-term highs or attempting to move lower for more than just a week or two.  "Relaxation," in this context, means we're not likely to see evidence of either this week.

Loan Originator Perspective

Bonds coasted through a flat session Monday as rates hovered near unchanged.   There's scant meaningful data this week to inform markets, I'll be surprised to see much movement.   Since we're near the recent range's low, I'll keep locking early while watching for further rallies. -Ted Rood

Today's Most Prevalent Rates

  • 30YR FIXED - 4.625
  • FHA/VA - 4.375%
  • 15 YEAR FIXED - 4.00%
  • 5 YEAR ARMS -  3.75-4.25% depending on the lender

Ongoing Lock/Float Considerations

  • Rates have been moving higher in a serious way due to headwinds that cannot be quickly defeated.  These include the Fed's increasingly restrictive monetary policy outlook, the increased amount of Treasury issuance to pay for the tax bill (higher bond issuance = higher rates), and the possibility that fiscal stimulus results in higher growth/inflation.

  • While we may see periodic corrections to the broader trend toward higher rates, it's safer to assume that broader trend can and will continue.  Until that changes, it makes much more sense to remain heavily-biased toward locking as opposed to floating.
  • Rates discussed refer to the most frequently-quoted, conforming, conventional 30yr fixed rate for top tier borrowers among average to well-priced lenders.  The rates generally assume little-to-no origination or discount except as noted when applicable.  Rates appearing on this page are "effective rates" that take day-to-day changes in upfront costs into consideration.