Mortgage rates were lower again today.  The improvement was fairly decent given the amount of movement seen in the bond market.  The reason for that has to do with the phenomenon we discussed on Friday whereby mortgage lenders are generally a bit cautious when it comes to adjusting rate sheets to keep pace with bond market movement.  With that in mind, bonds had improved during the day on Friday, but most lenders didn't adjust rates in the afternoon.  Simply put, we are seeing Friday afternoon's bond market improvement today.

There are only a few significant scheduled events with the potential to cause volatility for rates this week and they won't hit until the end of the week.  Even then, it will be next week's Fed announcement (where they're widely expected to cut rates) that stands the biggest chance to push rates higher or lower in the near term.  We'll talk more about why a Fed rate cut could still result in rates moving higher.

Loan Originator Perspective

Currently Locking at origination to take advantage of todays low rates. A number of funding sources have increased rates to curb volume and maintain service levels.   - Al Hensling

Today's Most Prevalent Rates

  • 30YR FIXED - 3.875%
  • FHA/VA - 3.625%
  • 15 YEAR FIXED - 3.5-3.625% 
  • 5 YEAR ARMS -  3.375-3.75% depending on the lender

Ongoing Lock/Float Considerations

  • Early 2019 saw a rapid reevaluation of big-picture trends in rates and in markets in general

  • The Federal Reserve has been a key player, and while they aren't the ones pulling the global economic strings, their response (and even their EXPECTED response) to the economy has helped rates fall more quickly than they otherwise might.

  • Based on the Fed's laundry list of concerns, the bond market (which determines rates) will be watching economic data closely, both at home and abroad, as well as trade-related concerns. The stronger the data and trade relations, the more rates could rise, while weaker data and trade wars will lead to new long-term lows.  
  • Rates discussed refer to the most frequently-quoted, conforming, conventional 30yr fixed rate for top tier borrowers among average to well-priced lenders.  The rates generally assume little-to-no origination or discount except as noted when applicable.  Rates appearing on this page are "effective rates" that take day-to-day changes in upfront costs into consideration.