April 17, 2018

Mortgage rates had a calm day.  Lenders who had offered improved rate sheets yesterday afternoon didn’t see much reason to drop rates any further today.  Lenders who took a more conservative route yesterday ended up being a little better off.  Although there were several economic reports this morning, bonds (which drive rates) did nothing to respond and have generally been uninspired so far this week.

In fact, in a broader sense, bonds haven’t exhibited much inspiration for more than a month.  Although rates have descended modestly since late February, it’s just as fair to label that movement as “flat” in the context of typical rate movement.  For example, most borrowers would still be quoted the same “note rate,” with the only difference being slight changes in upfront fees/points.

Today’s Best Execution Rates

 

Conventional 30 yr fixed	4.49%	-0.01
Conventional 15 yr fixed	3.89%	-0.01
FHA 30 Year Fixed	4.25%	+0.00
Jumbo 30 Year Fixed	4.50%	-0.02

Ongoing Lock/Float Considerations

• 2017 had proven to be a relatively good year for mortgage rates despite widespread expectations for a stronger push higher after the presidential election in late 2016.
• While rates remain low in absolute terms, they moved higher in a more threatening way heading into the beginning of 2018
• The scariest part of the move higher looks like it ended as of early February, and rates have been generally sideways since then
• Even so, the potential remains for more weakness (i.e. higher rates).  It makes more sense to remain defensive (i.e. more inclined to lock) until we’ve seen a more convincing shift lower.