Mortgage rates moved a bit lower yesterday after hitting the highest levels in more than a month the day before.  They kept the positive trend going today with another modest improvement.  While this isn't enough to have a major impact on the cost of financing, the average prospective mortgage borrower would be seeing a small drop in upfront closing costs.  In other words, the changes aren't big enough to affect the interest rate itself and it's those upfront costs that allow for the fine-tuning adjustments that are more commonly seen from day-to-day.

Today also happened to be relatively quiet when it comes to the data and events that have been driving interest rate volatility.  It's not that the bond market has lost interest in those factors--simply that there were in short supply or otherwise anticlimactic.  That could change tomorrow as we get the week's only serious day of domestic economic data.  Interest rates typically move higher in reaction to stronger-than-expected data and vice versa.

Loan Originator Perspective

It was a sedate day in rate markets, with MBS posting minimal gains.  Tomorrow brings the week's only meaningful economic data, but that doesn't mean it'll boost bonds.  I'm still locking early, there's no apparent trend here.  -Ted Rood, Senior Originator

Today's Most Prevalent Rates

  • 30YR FIXED -3.75-3.875%
  • FHA/VA - 3.375-3.5%
  • 15 YEAR FIXED - 3.375-3.5% 
  • 5 YEAR ARMS -  3.25-3.75% depending on the lender

Ongoing Lock/Float Considerations 

  • 2019 has been the best year for mortgage rates since 2011.  Big, long-lasting improvements such as this one are increasingly susceptible to bounces/corrections 

  • Fed policy and the US/China trade war have been key players.  Major updates on either front could cause a volatile reaction in rates

  • The Fed and the bond market (which dictates rates) will be watching economic data closely, both at home and abroad, as well as trade war updates. 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.