Mortgage Rates continue to operate at the same Best-Execution levels with only minor variations in borrowing costs between lenders on any given day.  Today is no exception as some lenders are slightly improved from yesterday while others are slightly weaker.  All in all, the change in borrowing costs between today and yesterday is almost imperceptible. 

There's at least one notable exception though.  While some lenders are potentially gradually building in higher rates over the past few weeks, others are announcing precipitous changes due to the recently approved Tax Cut Extension.  Read more about that here:

Tax Cut Extension Now Officially Raising Mortgage Rates

This introduces another element of risk beyond the standard issue concerns about European headlines affecting domestic bond markets or the market-moving potential of Friday's Employment Situation Report, both of which were mentioned in more detail YESTERDAY.  So although Best-Execution rates remain unchanged on average, things could change fairly quickly depending on the lender in question, and that could happen regardless of any underlying market movement. 


  • 30YR FIXED -  3.875%, glimpses of 3.75% at the top few lenders.
  • FHA/VA -3.75%
  • 15 YEAR FIXED -  3.375%
  • 5 YEAR ARMS -  2.625-3.25% depending on the lender

Ongoing Lock/Float Considerations

  • Rates and costs continue to operate near all time best levels
  • Current levels have experienced increasing resistance in improving much from here
  • There are technical reasons for that as well as fundamental reasons
  • Lenders tend to get busier when rates are in this "high 3's" level and can throttle their inbound volume by raising rates or costs.
  • While we don't necessarily think rates are destined to go higher, given the above facts, there seems to be more risk than reward regarding floating
  • But that will always be the case when rates operate near all-time levels, and as 2011 showed us, it doesn't always mean they're done improving.