October 23, 2012
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.
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.