Mortgage Rates Continue Higher

Here’s the latest on mortgages from Dale Lawrence

“Mortgage Rates Continue Higher

March 23, 2016

Mortgage rates moved higher again yesterday, casting a bigger shadow on last week’s improvements. Rates haven’t yet returned to the higher levels seen at the beginning of last week, but they’re quickly closing the gap. Still, the notion of “higher rates” is relative when most lenders are still quoting the same contract rates today vs yesterday. It’s only when we look at the upfront costs (or credit, depending on the scenario) that we see a deterioration. The average lender continues quoting conventional 30yr fixed rates in a range of 3.75-3.875%.

When it comes to the road ahead, yesterday’s weakness alone was enough to call last week’s positive trend into question. Naturally, today’s weakness only adds to the negative vibes. To be sure, there is more room for rates to rise without setting off the most serious warning bells regarding the longer term trend, but the momentum is negative enough that it doesn’t make sense to roll the dice without considering the risks. For those who choose the riskier path, be sure to set stop-loss level (i.e. locking to avoid further losses if rates rise).  

Loan Originator Perspective

Yesterday’s terrorist events in Brussels typically would have yielded a greater move lower in interest rates. The lack of the move lower can be attributed to a few factors, including the desensitization of these events, and the limited shock value they carry, or potentially the reality that bond bears are winning the fight. Good news is it looks like we will have another day in sub 4% 30 year mortgage rates. This week will be plagued with holiday schedules, therefore we must wait until next week for any real confirmation in either direction.   

Today’s Best-Execution Rates

• 30YR FIXED – 3.75-3.875%

• FHA/VA – 3.25-3.5%

• 15 YEAR FIXED – 3.00

• 5 YEAR ARMS – 2.75 – 3.25% depending on the lender”

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