Mortgage rates improved again today despite stronger-than-expected economic data.  When economic reports are better than forecast, rates tend to move higher, but geopolitical tensions are currently weighing on markets to some extent, especially since last Thursday.  In fact, today’s rate sheets fell back almost perfectly in line with Thursday’s latest offerings.   The most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) remains 4.25%. Many borrowers will see today’s improvement only in the form of lower closing costs (equivalent to 0.03% in terms of rate).

As was the case on Friday, today’s market movements don’t really tell us anything new.  Rather, they simply reiterate the fact that the push toward higher rates from late May has run its course.  That doesn’t mean rates couldn’t continue higher–simply that we’re waiting for the next trend to develop.  In the meantime, the range of movement has been very narrow, making for lower risk and reward for floating.  That said, rates are still much closer to recent lows than they usually stay after historically similar bounces, which is ample justification for those inclined to lock.