Mortgage Rates continue to operate near 5-month highs, after putting in a mixed performance today.  The morning was especially bad as stronger global economic data pushed US bond markets to their weakest recent levels (weak bonds = high rates).  The tense market environment surrounding the presidential election worked in rates' favor in the afternoon.  Headlines broke regarding new documents being posted by the FBI regarding a 2001 probe of the Clinton Foundation.  Although the details and rationale were sketchy, the news logically benefits Trump to an undetermined extent.  Because markets generally associate Trump with greater uncertainty, and because uncertainty motivates bond buying, bonds improved rapidly into the afternoon.  Most lenders issued positive reprices, bringing rates back in line with Friday's rates.

Despite the drama, and the fact that rates are legitimately at their highest levels in 5 months, it's good to remember that the last 5 months have been some of the best in the history of mortgage lending.  3.625% is still the going rate on top tier conventional loans, and there are still quite a few lenders quoting 3.5%.  Yes, there is a risk that the current trend toward higher rates will continue, but it wouldn't be until the early December central bank announcements (European Central Bank and the Fed) that things could really kick into high gear, for better or worse.

Tomorrow brings the 2nd-to-last Fed announcement of the year.  Some traders expect the Fed to telegraph a hike coming up in December.  The absence of such clues could be the thing that helps mortgage rates stage a small recovery, but that's not the sort of hope that should dissuade the average borrower from leaning toward locking vs floating.