Mortgage rates moved higher at a much quicker pace today.  This runs counter to the most widely-circulated weekly rate report from Freddie Mac, which indicates a new low for 2014.  The Freddie data isn’t wrong, just a little behind.  Still, it’s important for consumers to understand that today’s rates are no longer the year’s lowest.

This is a fairly common discrepancy between Freddie’s rate survey and reality, and it’s only a problem when markets move sufficiently after their survey results are in.  Considering that usually occurs by Tuesday, you may already be able to guess why such a survey is now outdated.  Simply put, yesterday and today combined for the biggest 2-day move higher in rates since April.  Today’s adjustment was much bigger than yesterday’s, and was completely unavailable to be counted in the survey.

In terms of rate quotes, the most prevalent conforming 30yr fixed rate for top tier borrowers was on the verge of moving down to 3.75% as of Tuesday (so it makes good sense that this week’s Freddie survey was the best of the year), but moved back up to 3.875% yesterday.  While 3.875% is still slightly more prevalent, we’re closer to 4.0% being the runner up at most lenders.  In almost all cases though, the costs associated with 3.875% make it a sweet spot in terms of efficiency.  That could mean it makes sense to pay extra upfront costs to move down to 3.875% if you’re currently being quoted 4 or 4.125.