Mortgage rates definitely hit the lowest all-time lows of all-time last week, at least for conventional 30yr fixed scenarios without many risk-based adjustments.  The most recently available Freddie Mac rate survey (which drives a majority of mortgage rate headlines) reported all-time lows as of last Thursday.  Indeed, that was still true as of Thursday, but things have changed since then.

The change began on Friday for most lenders as the bond market (which drives day-to-day changes in interest rates) began to lose ground fairly quickly.  Notably, the weakness followed the best-ever levels in mortgage-backed bonds (which most directly affect mortgage rates).  In other words, we had access to the best rates ever on Friday morning, but the average lender has moved slightly higher since then. 

Context is important here.  We're not even talking about an eighth of a percentage point in interest on average (though some lenders/programs have moved by as much as .25%.  But the goal here is not to highlight a massive bounce in rates.  Rather, I simply want to set the record straight for those reading over-the-weekend coverage of a now-outdated mortgage rate conclusion from last Thursday.  Bottom line: rates are not any lower today than they were on Friday.  In most cases, they're slightly higher. 


Loan Originator Perspective

Bonds continued Friday's sell off, posting small losses by early PM.  My pricing mirrored Friday's.  We're still near (but not at) all time rate lows.  I am still locking early for most clients, unless they really crave risk. -Ted Rood, Mortgage Banker

Interest rates may have hit their all time lows last week, however until we see a significant shift in momentum the trend indicates we may continue to see new lows.  There are many reasons to make the argument for rates to go higher, or even lower, but at the current levels locking in is the right move.  -Gus Floropoulos, SVP