Mortgage Rates are slightly improved today after minor increases to borrowing costs over the past two days.  Before that, rates spent several days at record lows with little deviation in borrowing costs.  We mention "borrowing costs" because the costs involved in obtaining prevailing rates are actually what's moving as opposed to the rates themselves.  Best-Execution 30yr Fixed rates remain at 3.875%.

Low volume and year-end lack of participation continue to distort movements in the secondary mortgage market.  The lower a market's volume, the more weight carried by those who participate meaning that it takes fewer trades/less money to move things around.  In general, MBS (mortgage-backed-securities) have pitched and rolled less (for better or worse) than their Treasury counterparts.

Please make sure to read the "important rate disclaimer" at the bottom of the page in considering what "all-time lows" means.  The issue of "buckets" as described in the lock/float considerations below, remains a factor that may prevent rates and/or fees from moving significantly lower in the short term.


  • 30YR FIXED -  3.875%
  • FHA/VA -3.75%
  • 15 YEAR FIXED -  3.375%
  • 5 YEAR ARMS -  2.625-3.25% depending on the lender

Lock/Float Considerations

As noted in the previous post, in many regards today is essentially the last trading day of the year.  Despite the predisposition toward volatility at times like this, rates have been holding admirably steady.  Even so, the ongoing low volume environment through the new year still constitutes more of a risk than a benefit as far as Mortgage Rates are concerned.  To be clear, we're not saying any fundamental negativity is sweeping over the interest rate landscape, simply situational risk.  Keep in mind that rates are about as low as they've ever been and moving more than .125% lower from here will not be easy or fast.

Tomorrow will be a short day for markets and many lenders will be closing early.  Markets are closed on Monday and very few (if any) lenders will be open.