Mortgage Rates Unchanged
Mortgage rates didn’t budge –not one little bit. It’s one thing for lenders to be adjusting rate sheets at various points in the day, beginning stronger, ending weaker, and ultimately averaging out to the same rates as the day before (as was the case yesterday). It’s another thing altogether for every lender to come in the door at the exact same rates the next morning and stick with them all day long. That sort of complete absence of movement stands in sharp contrast to almost any other day spent watching markets and rates, hence the “sharply unchanged” descriptor in the title.
The most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) is unchanged at 4.125%. Many lenders remain better-priced at 4.25%. “Better-priced” in this context, means that the combination of closing costs and contract rate (the actual interest rate at the top of a mortgage quote) presents better bang for the buck.
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Today’s lack of movement puts an exclamation point on more than a week of generally sideways rates. In the current case, being sideways is a good thing as it’s occurring right around the lowest rates in 11 months (a few days in late October were marginally better, but other than that, we’re looking all the way back to June 19th, 2013 to find better rate sheets). Markets are waiting to see if the European Central Bank will embark on a round of Quantitative Easing at their upcoming meeting.
There are other factors contributing to the narrow rate range, but in all cases, they’ll be clearing up within two weeks. At that point, rates will either move higher or lower. Both sides have arguments, but neither has a decisive victory. Until that changes, the day-to-day trading range for rates should remain compressed by historical standards. That limits the incentives to float, but also decreases the risk.
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- 30YR FIXED - 4.125%-4.25%
- FHA/VA – 3.75-4.0%
- 15 YEAR FIXED - 3.25-3.375%
- 5 and 7 YEAR ARMS - 2.50-3.50% depending on the lender
Jerry Vigorito NMLS #115522
Executive Mortgage Banker
Phone: 203.692.4177Fax: 203.692.4177
Email: jerry.vigorito@raveis.com
Click here to apply online using my Secure Online Application
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