After two days of significant improvements, Mortgage Rates took a measured step back on Friday.  Best-Execution rates rose about an eighth of a point.  The trend continued today, although in slightly less dramatic fashion. 

It was merely a slightly negative day for rates.  There wasn't much to drive trade on the secondary market and traders are likely waiting to see how this week's Treasury auctions pan out (Treasuries are related to MBS, but MBS or "mortgage backed securities" are the true drivers of changes in mortgage rates) as well as the upcoming kick-off of the Fed's return to scheduled participation in the MBS Market. 

(temporary caveat that we'll probably repeat a few more times): Please keep in mind that lenders simply cannot move mortgage rates lower at the same pace as a rapid rally in Benchmark Treasuries.  Although you might hear talking heads on TV or read articles saying that mortgage rates are tied to Treasuries, THEY ARE NOT, and you'll be perennially frustrated if you expect them to be.  We explained that in greater detail earlier in the month:(Why aren't rates getting lower as fast as Treasuries). 

Today's Rates:  

  • BESTEXECUTION 30YR FIXED -  rates edged up to straddle 3.875% and 4.0% today, with a higher than normal degree of variation around there. 
  • FHA/VA - still at 3.75%  
  • 15 YEAR FIXED -  deals...  Some will still be best priced at 3.25%, but 3.375% is back in the market today
  • 5 YEAR ARMS -  remain near 3.125%, but with variations from lender to lender.

GUIDANCE:  Going back and reviewing the recent RateWatch posts, it seems like it would be hard to be much more in favor of locking.  So we'll assume you've heard that if you've been following and know how to go back and check what's been said previously if you so desire.  Bottom line, rates are still historically low.  Locking is still the default guidance and preference.  That said, if you're in a situation where your quoted rate just moved up an eighth (from 3.875% to 4.0% for instance), talk to your mortgage pro to see how much worse markets would need to get before you'd be moving up again (to 4.125% for instance).  Chances are, you're closer to falling back down to the lower rate if you just got nudged higher today.  If you can afford to take such risks, and are perfectly fine with paying extra closing costs should the market move against you, you might wait to see if you can get back down to where you were on Friday.  Just a thought, and not one I particularly endorse, but there are only so many ways to say "you should lock," before it's time to say something else.