Mortgage Rates Bounce Back to Week’s Lows

Mortgage rates were lower today, continuing a move set in motion by comments from Fed Chairman Bernanke late in yesterday’s session. Markets didn’t have much time to react, but showed early hints at today’s strength in overnight trading. Some mid-day volatility forced a few lenders to adjust rates higher, but once it was resolved, even more lenders adjusted rates lower before the end of the day. The net effect is a 30yr fixed best-execution rate that’s more convincingly down in the 4.625% range, whereas some lenders were arguably near 4.75% yesterday.

Mortgage rate movement can be measured in two ways. Of course we can examine changes in the actual rate (which we extrapolate on our “mortgage rates” page), but lenders typically offer rates in increments of 0.125% or “an eighth.” The balance of day to day (and sometimes hour to hour) movement occurs in “cost.” This can refer to the upfront costs associated with buying down a rate or the amount of cash back otherwise received at closing. Today was one of those days where the movement was almost enough to simply say “rates dropped an eighth,” but not quite. As such, the reference to 4.75% yesterday versus 4.625% today doesn’t mean rates are simply an eighth lower, but it may have made a move down in rate affordable to the point that it’s worth the cost. Your lender will generally have the option to show you how adjacent rates will affect your upfront costs.

There’s the important Retail Sales report on Monday morning which may prevent rates from getting too low as market participants look to stay nimble ahead of the data

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About mortgagelendingstatenisland

I am a mortgage banking veteran with over 15 years of experience at every level of the mortgage arena. I am known as the "closer" because of my troubleshooting skils and ability to explain in detail to my clients and business partners "What Makes A Mortgage Approvable".

Posted on July 12, 2013, in Uncategorized and tagged , , , , , , , . Bookmark the permalink. Leave a comment.

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