Ongoing moderation of the Euro-Zone-driven "flight to safety" as well as a weak US Treasury auction today combined to drag most domestic interest rates a bit higher, including Mortgage Rates

Many lenders' Best-Execution levels are an eighth of a point higher in rate today, moving from 4.0 to 4.125% although both quotes still exist.  Other lenders' movements were limited to changes in closing costs, but either way, things are more expensive today


  • 30YR FIXED -   Straddling 4.0% and 4.125%
  • FHA/VA - 3.75- 3.875%
  • 15 YEAR FIXED -  3.375%-3.5%
  • 5 YEAR ARMS -  low 3% range, huge variations from lender to lender.

Previous Guidance (offered as background to today's new 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 recently, we've seen some more consistently good pitches (best-ex around 4.0% instead of 4.25%).  Sure... you've seen better, but not by much (3.875% and RARELY 3.75%).  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%, 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.  Ask us to explain more about that if it doesn't make sense.  .

New Guidance: In terms of the batting cage metaphor, the pitches are getting pretty ugly.  Only another eighth or so until they become unhittable.  If you're looking at the same rate quote today as you were yesterday with the only change being in closing cost, we'd lean toward locking, especially heading into a 3 day weekend for bond markets where European headlines could result in drastically different rates by Monday.  Risk-takers might wait it out to see if the previous "wall" at 4.25% can hold up to a second assault (assuming rates rise again next week), either locking at a loss if things do get worse or capitalizing on the bounce back if they don't.