Mortgage rates moved lower again, with the best options available in the morning hours.  After that, bond markets including MBS (the mortgage-backed-securities that most directly affect mortgage rates) moved back into weaker territory on the day, prompting some lenders to raise rates in the afternoon.  The most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) remains at 4.125%, with most borrowers seeing today’s improvement in the form of lower closing costs.  Expressed in terms of ‘effective rate,’ the drop in closing costs amounts to 0.02%.

Even after the afternoon reprices, today’s rates are still the best this month and very close to being the best this year.  Only 2-3 days were better at the end of May.  Any time rates are at a periodic low like this, it’s never a bad decision to lock in the improvements.  While we could see modest gains from here, the risk is rapidly increasing that the recent trend of improvement will take a breather, or even reverse next week.  If you’re not able to lock today, or not interested, just be aware that the prospects for volatility will be increasing after Monday night.