Mortgage Rates Modestly Lower

Mortgage Rates Modestly Lower Ahead of Big Jobs Reporthome8




Mortgage rates continued their recent trend of almost imperceptible movement today.  This time, things improved ever-so-slightly with most lenders lowering the upfront costs associated with prevailing rates.  In other words, the underlying market movement continues to be small enough that rates, themselves, are rarely changing from one day to the next.  Instead, it’s the upfront borrowing costs (or lender credit, depending on the scenario) that are acting as the fine tuning adjustments.

In terms of coarse adjustments, most lenders are quoting conventional 30yr fixed rates of 4.0% on top tier scenarios, though 3.875% is still fairly prevalent.

All of this narrow range business could change abruptly in the next two weeks, and certainly as early as tomorrow morning.  The Employment Situation Report (or “jobs report”) is the most important piece of economic data on any given month, and this iteration is doubly important because it will either help or hinder the Fed’s rate hike efforts.  As recently as last week, a top fed official specifically referenced this week of data and the next as playing key roles in determining the Fed’s course of action.

Tomorrow’s jobs data is undoubtedly the biggest piece of data during that time.  Therefore, if it makes a strong comment for or against hiking rates, financial markets may respond in a big way.  That means much bigger potential changes for mortgage rates first thing tomorrow morning.

Loan Originator Perspective

“Bonds stayed within a narrow range again today, and rates were essentially on par with Wednesday’s. Looks like it’ll take either an unexpectedly strong/weak NFP report tomorrow, or more Fed guidance from their next statement to move rates up/down. There’s certainly nothing wrong with current rates, and floating into NFP is inherently risky. Locking removes your risk, and I am recommending that for my clients within 30 days of closing. Whenever the next rate move hits, it may be both large and fast. The question is when that happens, and my crystal ball is broken today.” –Ted Rood, Senior Originator

Today’s Best-Execution Rates

  • 30YR FIXED – 4.0
  • FHA/VA – 3.75%
  • 15 YEAR FIXED – 3.25%
  • 5 YEAR ARMS –  2.75 – 3.25% depending on the lender

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