30 Year Fixed
4.94%    +0.00
15 Year Fixed
4.42%    -0.01
10YR Treasury
3.17%    +0.0210
FNMA 30YR 3.5
97.47    -0.17
FNMA 15YR 2.5
98.27    -0.16
Mortgage Rates Hold Steady as Stocks Stabilize
October 12, 2018

Mortgage rates held relatively steady today, finally leveling off after two solid days of improvement driven by the week's big stock market sell-off.  Stocks and rates don't always move in the same direction at the same time, but when stocks make a big move lower, rates tend to benefit.  This week's move lower in stocks was the 3rd largest since the financial crisis.  In that light, we only saw a mere token of improvement for mortgage rates, but we'll take what we can get considering it was the only meaningful drop in rates since August 10th.

For most of the day, it looked like stocks might head back down, but they recovered in the afternoon.  That put an end to the hopes of any more improvement in mortgage rates for this week.  Underlying bond markets were quick to follow stocks back in the other direction as well.  This suggests that things will remain challenging for rates in the coming week, unless another source of inspiration suddenly appears.


Loan Originator Perspective

Bond markets were flat today, amid a morning stock rally and PM sell-off.  We're near the best levels since early October, but there's no apparent momentum to continue this rally.  I'm still in lock early mode, we haven't seen 2018's highest rates yet. -Ted Rood, Senior Originator


Today's Most Prevalent Rates

  • 30YR FIXED - 5.0%
  • FHA/VA - 4.5-4.75%
  • 15 YEAR FIXED - 4.5%
  • 5 YEAR ARMS -  4.25%-4.75% depending on the lender


Ongoing Lock/Float Considerations
 

  • Rates continue coping with several big-picture headwinds, including: the Fed's rate hike outlook (and general policy tightening), 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 (which certainly seems to be the case so far in 2018).

  • While rates were able to recover and stay sideways in the summer months, September and October have seen a surge up to the highest levels in more than 7 years. 

  • Upward pressure can continue as long as economic growth and inflation continue running near long-term highs.  Stay defensive (i.e. generally more lock-biased).  It will take a big change in economic fundamentals or geopolitical risk for the big picture to change.  Such things tend to not happen as quickly as we'd like.
  • 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.

30 Year Fixed Rate Mortgage
15 Year Fixed Rate Mortgage
Co-branded Daily Rate Report for:
Oliver Orlicki
Senior Loan Originator
Innovative Mortgage Services
License:  NMLS #205123
As a licensed mortgage originator, I work hand-in-hand with homebuyers and homeowners to explore and secure or refinance loans that suit their needs. Guiding and advising my clients every step of the way, from application to closing, I help them ...view more
Email Me | Visit My Website
(813) 302-1616
View My Profile
Today's Rates
Best Execution
Rate Change
30 Yr FRM 4.94% +0.00
15 Yr FRM 4.42% -0.01
FHA 30 Year Fixed 4.50% +0.00
Jumbo 30 Year Fixed 4.40% -0.01
5/1 Yr ARM 4.43% +0.01
Average Mortgage Rates
Rate Points Change
FHFA *
15 Yr. Fixed 4.15% 1.16 -0.02
30 Yr. Fixed 4.78% 1.15 +0.01
MBA **
30 Yr. Fixed 4.96% 0.49 -0.01
15 Yr. Fixed 4.39% 0.50 +0.01
30 Yr. Jumbo 4.93% 0.31 +0.01
30 Yr. FHA 4.95% 0.80 +0.01
5/1 ARM 4.24% 0.48 +0.02
Freddie Mac **
30 Yr. Fixed 4.90% 0.50 +0.19
15 Yr. Fixed 4.29% 0.50 +0.14
1 Yr. ARM 2.68% 0.20 +0.01
5/1 Yr. ARM 4.07% 0.30 +0.06
* FHFA averages are updated monthly.
** Mortgage Bankers Association (each Wednesday) and Freddie Mac (each Thursday) averages are updated weekly.
Secondary Markets
MBS
Price Change
30YR FNMA 3.0 94.63 -0.19
30YR FNMA 3.5 97.47 -0.17
30YR GNMA 3.0 95.97 -0.17
30YR GNMA 3.5 98.50 -0.14
15YR FNMA 3.0 98.27 -0.16
15YR FNMA 2.5 95.83 -0.16
Treasuries
Yield Change
2 YR 2.8611% +0.0127
5 YR 3.0217% +0.0207
10 YR 3.1670% +0.0210
30 YR 3.3381% +0.0208
Prices as of: 10/12/2018 5:07PM EST
MBS and Treasury data provided by Thomson Reuters.
Mortgage News Daily and MBS Live! are exclusive re-distributors of Real Time Thomson Reuters Mortgage Information.
Secondary Marketing Managers:
If you are interested in gaining access to the most accurate real-time back-month TBA indications from Thomson Reuters and Tradeweb. Request More Information
About This Report
Mortgage News Daily is a trusted source of mortgage rate market data and analysis, with over 1 million readers each month. Unlike many rate surveys, our survey is conducted on a daily basis and is designed to bring you the most current and accurate rate data available.  We use a proprietary formula to calculate averages based on best-execution rates from top lender's rate sheets, also taking into account feedback from hundreds of mortgage market professionals around the country.