August 7, 2017
Mortgage rates were generally unchanged today, compared to Friday afternoon's latest levels. Only a handful of lenders responded to strength in bond markets this afternoon by offering rate sheet improvements. That's a mixed blessing as it leaves other lenders with more to work with tomorrow. In other words, we'll be heading into the day with a small comparative advantage. That means if bond markets (which dictate rates) haven't moved much by tomorrow morning, most lenders should be able to offer improved rates.
A caveat for all of the above is that we're talking about extremely small movement in the bigger picture. The overall range has been exceptionally narrow, and most clients aren't likely to have seen any changes to their quoted interest rate in more than a week. Instead, changes would be seen in the upfront costs, which allow for smaller fine-tuning adjustments to overall financing costs.
Loan Originator Perspective
If you are seeing improved rate sheets this morning, i would go ahead and lock up today if within 30 days of funding. The benchmark 10 year note has been unable to break our floor around 2.22%. Until that breaks, i think locking the lows of the range is the way to go. -Victor Burek, Churchill Mortgage
Today's Most Prevalent Rates
- 30YR FIXED - 4.00%
- FHA/VA - 3.75%
- 15 YEAR FIXED - 3.375%
- 5 YEAR ARMS - 2.75 - 3.25% depending on the lender
Ongoing Lock/Float Considerations
- Investors were relatively convinced that the decades-long trend toward lower rates had been permanently reversed after Trump became president, but such a conclusion would require YEARS to truly confirm
- Instead of continuing higher in 2017, rates instead formed a narrow, sideways range, and held inside until April. Investor perceptions are shifting such that fiscal reforms and other policy developments will need to live up to expectations in order to push rates higher. Geopolitical risks would also need to avoid flaring up (more than they already have)
- For the first time since the election, we're in a rate environment where you wouldn't be crazy not to lock at every little opportunity/improvement. Until/unless it's broken, the highest rates of early-2017 mark the ceiling, and we're now waiting to see how much lower we can go from here.
- 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.