April 17, 2018
Mortgage rates had a calm day. Lenders who had offered improved rate sheets yesterday afternoon didn't see much reason to drop rates any further today. Lenders who took a more conservative route yesterday ended up being a little better off. Although there were several economic reports this morning, bonds (which drive rates) did nothing to respond and have generally been uninspired so far this week.
In fact, in a broader sense, bonds haven't exhibited much inspiration for more than a month. Although rates have descended modestly since late February, it's just as fair to label that movement as "flat" in the context of typical rate movement. For example, most borrowers would still be quoted the same "note rate," with the only difference being slight changes in upfront fees/points.
Loan Originator Perspective
Markets continue to resist pressure. Still recommend locking at origination. Possible inverted yield curve looming.-Al Hensling, Mortgage Originator
Bond markets shrugged off opening weakness Tuesday, closing with small gains. We still haven't recouped last Thursday's large losses, but at least the bleeding's slowed for now. There's no notable economic news this week, I'm guessing it'll take DC Drama or geopolitical strife to prove a meaningful rally. I'm still locking early. -Ted Rood, Senior Originator
Today's Most Prevalent Rates
- 30YR FIXED - 4.5%
- FHA/VA - 4.25%
- 15 YEAR FIXED - 3.875%
- 5 YEAR ARMS - 3.5-3.75% depending on the lender
Ongoing Lock/Float Considerations
- 2017 had proven to be a relatively good year for mortgage rates despite widespread expectations for a stronger push higher after the presidential election in late 2016.
- While rates remain low in absolute terms, they moved higher in a more threatening way heading into the beginning of 2018
- The scariest part of the move higher looks like it ended as of early February, and rates have been generally sideways since then
- Even so, the potential remains for more weakness (i.e. higher rates). It makes more sense to remain defensive (i.e. more inclined to lock) until we've seen a more convincing shift lower.
- 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.