Mortgage rates finally made a break from their recent flat and sideways pattern, moving officially to the best levels of 2013 by a small margin (this may vary slightly depending on the lender).  The day-over-day improvement isn't out of line with average fluctuations in rates, but against the backdrop of the past two weeks, it stands out.  Most lenders have been competitively priced between 3.25-3.5% on 30yr Fixed, Conventional loans.  While the best execution rate has been 3.5% with 3.375% looming, today's improvements probably tip the scales in favor of 3.375% for some scenarios.  Lower rates are available at most lenders and the costs associated with moving lower from 3.375% may make sense for some borrowers.

Mortgage rates continued lower today, after officially hitting the lowest levels of the year on Friday.  Bond markets including MBS (the "mortgage-backed-securities" that most directly affect mortgage rates) generally held steady despite advancing stock prices.  More specifically, MBS actually did a better job holding their ground than 10yr US Treasuries, which tend to move in the same direction.  Whereas Treasuries are just slightly weaker than Friday's latest levels, MBS are slightly stronger.  This allowed lenders to adjust rate sheets further into the year's best territory with 3.375% now becoming a contender for the Conventional, 30yr Fixed best execution rate, which has been at 3.5% after topping out at 3.625% - 3.75% earlier this year.

Mortgage rates extended their run into 2013 lows today, but only by small margins.  The movement is essentially similar to yesterday's and further supports the case for a shift from 3.5% to 3.375% for the Conventional, 30yr Fixed best execution rate.  The borrowing costs associated with 3.5% are at their 2013 lows while those associated with 3.375% aren't quite back to early January levels.

Mortgage rates kept falling today, further extending the run into the lowest rates of 2013, but not quite in all-time low territory yet.  Much of today's improvement was a factor of the morning's employment data from ADP--seen as forward indicator of Friday's official Employment Situation Report.  Bond markets, including the mortgage-backed-securities (MBS) that underpin mortgage rates, began improving at a solid pace well before rate sheets came out.  The remaining economic data either "didn't hurt" or flat-out helped rates keep dropping ahead of the day's main event, The FOMC Announcement.

Mortgage rates broke a 4 day winning streak today, moving moderately higher after hitting 2013 lows yesterday.  For many, the difference will be immaterial as today's average rate is the second lowest of 2013.  In fact, any of the days in this week have been at least slightly better than any other day in 2013.  Conventional 30yr Fixed rates are moving between 3.5% and 3.375% with the latter gaining a significant amount of traction in the past two days.  Lower rates are available, and the costs associated with buying down to those rates have been decreasing.

Mortgage rates shot higher at their fastest pace in two months after this morning's hotly anticipated Employment Situation Report showed that job creation in April was better than expected.  Stronger economic data tends to cause longer term interest rates to move higher.  In addition to April's relative strength, the report also revised March's abysmal job creation of 88k payrolls up to more palatable 138k.  This likely exacerbated the resulting weakness in bond markets as the March numbers (released on April 5th) were a big factor in the past month of improvements in mortgage rates.  The average  conventional 30yr Fixed rate for an ideal scenario had been edging down to 3.375%, and while that remains viable today, the average once again centers on 3.5%.