CONTACT ME
Mortgage Rates Roughly Unchanged Near Recent Highs

Mortgage rates were unchanged today, on average, marking the second straight day with minimal change near the highest levels in more than 2 months.   For most lenders, that means conventional 30yr fixed rate quotes near 4.0% on top tier scenarios.  So far this week, day-to-day changes have been limited to the upfront closing cost side of the equation (as opposed to interest rates themselves).  While this can have a slight impact on the overall cost of financing, it doesn't change the "note rate" attached to a new mortgage.

Underlying financial markets have been fairly calm for the past 2 days despite successive all-time highs in stocks.  The economic data and events that motivate bond markets (which dictate mortgage rates) have been absent, but that's set to change heading into the 2nd half of the week. With the economic data comes an increase in potential volatility.  Rates have risen enough since early September that some market participants are hoping they'll find a ceiling soon, but we haven't seen enough evidence for that to abandon a defensive stance just yet. 

Locking continues to make more sense than floating until bond markets improve more meaningfully.  To quantify that, if 10yr yields are in the low 2.3's today, we wouldn't even begin to entertain a shift in the broader negative trend until 10yr yields hit the low-to-mid 2.2's.

This Daily Mortgage Rate Update is provided in partnership with Mortgage News Daily.