It's a testament to the persistence of the recent move higher that mortgage rates experienced their best  day in over a week on Tuesday.  Reason being: the improvements weren't anything special and not at all out of line with an average "good day for mortgage rates."  It's just that that we've only seen one day of improvement since October 12th and today's gains are slightly better.  Best-Execution for 30yr Fixed Conventional Loans remains at 3.375% among most lenders, though adjacent rates are viable choices in some scenarios.  The "improvements" come in the form of lower closing costs or increased lender credit while Best-Execution is unchanged from yesterday.

(Read More:What is A Best-Execution Mortgage Rate?)

We noted yesterday that the week began slowly and likely wouldn't ramp up until Wednesday's data and events which include the first noteworthy economic reports of the week as well as the first FOMC Announcement since QE3 was unveiled in mid September.  Market participants generally seem to be casting a skeptical eye on the market-moving potential of tomorrow's FOMC Announcement, but even if it doesn't ultimately motivate movement in one direction or another, markets could simply be waiting to be sure of that fact before making their next concerted move.

Loan Originator Perspectives

"Rates are marginally better but still off the recent lows. I'm back to locking everything because the risk of not seems to great to stomach. Why play with fire? " -Mike Owens, Partner with Horizon Financial, Inc..

Today's Best-Execution Rates

  • 30YR FIXED - 3.375%
  • FHA/VA - 3.25% (varies more between lenders than conventional 30yr Fixed)
  • 15 YEAR FIXED -  2.875%
  • 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
  • Rates could easily move higher or lower, but given the nearness to all time lows, there's generally more risk than reward regarding floating
  • This 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.
  • (As always, please keep in mind that our talk of Best-Execution always pertains to a completely ideal scenario.  There can be all sorts of reasons that your quoted rate would not be the same as our average rates, and in those cases, assuming you're following along on a day to day basis, simply use the Best-Ex levels we quote as a baseline to track potential movement in your quoted rate).