Mortgage rates were lower for a 3rd straight day, effectively confirming that markets hadn’t merely paused for reflection on a determined move to new 2014 highs.  For a few days, that was a risk to be weighed as markets perceived last week’s Fed Announcement as a turning point toward a more aggressive rate hike policy.  The Fed Funds Rate doesn’t dictate mortgage rates directly, but an accelerated rate hike outlook could create a change in momentum for the entire bond market, which includes the bonds that DO dictate mortgage rates.

Today’s improvement brings rates back to levels not seen for 2 weeks.  For some lenders this means that an actual drop in the quoted rate as opposed to a drop in closing costs.  On average, the most prevalently-quoted conforming 30yr fixed rate remains 4.25%, but we’re now much closer to 4.125%.  Some lenders are there already.  Keep in mind though, even in cases where lenders CAN offer that rate, 4.25% may be a better deal in terms of closing costs vs monthly payment.