After several days at record lows with little deviation in borrowing costs, Mortgage Rates have now moved slightly higher on two consecutive days. The borrowing costs involved in obtaining prevailing rates are actually what's moving higher as opposed to the rates themselves.  Best-Execution 30yr Fixed rates remained unchanged, though some less aggressively priced lenders are getting close to moving up in rate.

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 weathered the storm better than Treasuries on these down days.

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

You should be able to notice a slightly negative trend in rates over the past two days and a more and more cautious tone from us as rates hit their lifetime lows.  Thankfully, the rates themselves can still be had, just at slightly higher closing cost levels.  There's quite a bit of economic data tomorrow and with many schools/businesses closed on Friday (bond markets close early as well), it will essentially be the last trading day of the year.  Markets are open next week, but in name only.  It'll be a ghost town and we'd hesitate to draw any conclusions based on trading levels until well into the new year. Bottom line, the ongoing theme of low volume and the need to consider European news in addition to domestic economic data creates a riskier and riskier environment for Mortgage Rates.  To be clear, we're not saying any fundamental negativity is sweeping over the interest rate landscape, simply situational risk.