November 13, 2012
Mortgage rates edged just slightly higher to begin the shortened week. Most lenders were closed yesterday in observance of the Veteran's Day holiday and did not generate new rate sheets. Compared to Friday's rates, today's are moderately higher in most cases, but generally better than Wednesday and Thursday's offerings. Best-Execution for 30yr Fixed, Conventional loans continues to hover between 3.25% and 3.375% depending on the lender and scenario with the changes versus last week being seen primarily in COST (as opposed to the actual INTEREST RATE).
There was no significant economic data released in the US this morning and markets took most of their direction from European events overnight. Along with potential headlines concerning the "Fiscal Cliff" in the US, European headlines could continue to play a part in determining broader trends in interest rates as November 16th marks a funding deadline for Greece. Several pieces of news regarding the potential structure of that funding deal had minor positive and negative effects on rates markets over the course of the day.
Loan Originator Perspectives
"Interest rates have gradually improved since the recent highs. I would pay close attention to movements in the 10 year treasury to confirm the recent improvements, and create some stability in day to day rates and spreads. Based on the recent trends, we are near the lowest yields on the 10 year treasury, therefore I would be extremely cautious floating at these levels as the risk vs reward is diminished." -Constantine FLoropoulos, Quontic Bank.
"Rate remain favorable! I mean really good! Do yourself a favor and grab an early Christmas mortgage!" -Bob Van Gilder (BVG) Finance One Mortgage.
Today's Best-Execution Rates
- 30YR FIXED -3.375%, 3.25% depending on scenario/lender
- FHA/VA - 3.25% (varies more between lenders than conventional 30yr Fixed)
- 15 YEAR FIXED - 2.875% - 2.75%
- 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).