Mortgage rates rocketed higher precipitously today, taking them to their highest levels since April 2nd.  The move was all the more confounding as it happened on a day with no significant headlines or data releases--at least not the caliber of information that normally motivates such violent swings.  When the dust settled, borrowing costs at the 3.5% 'best-execution' were up anywhere from 0.4 to 1.2% depending on the scenario (this is equivalent to $400-$1200 in closing costs or lender credit for every $100k financed).  It was also enough of a move to bring 3.625% back into picture and as a viable best-execution contender.  The differences between those two rates are minimal in terms of efficiency, and in most cases, the choice amounts to a trade off between up front cost and monthly payment.

Mortgage rates continued higher to begin the week, carrying some momentum from Friday's rapid move higher and taking new cues from a stronger-than-expected Retail Sales report this morning.  Rates were already at their worst levels in over a month last week, but today's losses mean we'd have to go back to March 22nd to see similar rate sheets.  The best-execution rate for conventional, 30yr fixed loans is now well into 3.625%, though lower rates remain available for additional costs.

Mortgage rates began the day in promising shape, but lost their composure early and often.  Despite several lenders releasing their initial rate sheets today in line with yesterday's, the afternoon brought 1-3 rounds of new rate sheets with costs significantly increased from morning offerings.  The best-execution rate for conventional, 30yr fixed loans has already moved most of the way through 3.625% and some lenders are edging into 3.75% territory.

Today's losses weren't a factor of any economic reports in the US (or abroad, for that matter), yet markets moved with determination.  All of the more granular contributors are operating in the shadow of the FOMC issues we discussed yesterday.  Today was additionally frustrating as the granular factors were particularly hard to find, having lots to do with European debt announcements, ratings, and other esoteric trading considerations that don't make for easy explanations on the evening news.  

Mortgage rates had a good day, despite the fact that the day-over-day change from yesterday is flat to slightly higher.  Part of the reason for the higher average rate (by .01%) today has to do with late day negative reprices yesterday that weren't yet reflected in our daily marks.  This helps the best-execution rate for conventional, 30yr fixed loans, stay in it's 3.625% zone.  Lower rates continue to be viable options in some scenarios, but are increasingly costly, moving lower from 3.625%.  

Mortgage rates moved lower at their fastest pace in 6 weeks today, erasing most of the losses seen so far this week.  Not all lenders have adjusted pricing at the same pace, however, and best-execution is still 3.625% for conventional, 30yr fixed loans.  That means today's improvements came in the form of lower borrowing costs or increased lender credit, depending on the scenario.  

Today's improvements were potentially important in the bigger picture.  We began talking about this yesterday, saying that:

Mortgage rates moved higher at their fastest pace in two weeks, after having their best day in more than 6 weeks just yesterday.  The net effect for rates is not good, leaving them at their highest levels of the week and very close to 2013 highs seen in early March.  While 3.625% remains as the best-execution rate for conventional, 30yr fixed loans, the costs associated with that rate (or whatever rate you're considering) are as high as they've been all week.  Further increases from here start to shift the balance toward 3.75%.