With volumes fairly low and no major domestic data today, markets were susceptible to European headlines.  They got one in the form of an announcement that Italy's Prime Minister would soon resign-a development viewed as positive by stocks and negative by bond markets, thus dragging Mortgage Rates higher.

Most of the losses were seen late in the day so whatever your rate was this morning might not be what it is right now.  Best-Execution is still just slightly more prevalent at 4.0%, but a lot more 4.125% today vs almost none yesterday.


  • 30YR FIXED -   Centered on 4.0%, getting close to 4.125%
  • FHA/VA - 3.75, much more 3.875%'s today
  • 15 YEAR FIXED -  3.375%-3.5%
  • 5 YEAR ARMS -  low 3% range, huge variations from lender to lender.

Yesterday's Guidance: Rate offerings from lenders over the past month have been like a temperamental pitching machine in a batting cage-generally getting the ball across the plate, but with no really juicy pitches.  But now Friday and Today's rates have been akin to nearly perfect pitches.  Sure... you've seen better, but not by much.  How many more will you count on before calling it a day?  Personally, I'd like to end my batting cage session with a nice hit.  The more "pitches" you wait for with rates already at a 4.0% Best-Ex pushing 3.875% soon, the greater the risk that the next pitch will be a curveball.  To drop the metaphor, although rates this low CAN go slightly lower, the improvements are fairly minimal compared to how much higher they could go.  Still, if you're not in any particular need to refinance and are operating on a longer-term perspective, we continue to feel good about that "wall" at a 4.25% best-execution level as a good stop-loss point for inclined floaters.

Today's Guidance: Yeah... this is one of those days where I'd direct you back to yesterday's guidance.  We're in a market that can still very much go either way, BUT even after these losses today, we're also still very much in a historically low range of mortgage rates where yesterday's guidance still very much applies.  Think of today as a slightly frustrating way to end your batting cage session, but still very much better than getting cracked in the side of the head with a rogue knuckleball.  (For those that weren't following the baseball analogy, that "rogue knuckleball" would be like more potential increases in rates and in greater amounts).