Mortgage rates were at their highest levels in more than a week yesterday, but have fallen back to the best levels in 4 days today, on average.  Some lenders are slightly higher than yesterday.  Most are lower.  In all cases, the overall scope of the movement has been exceptionally small after Monday’s big move higher.  Most lenders are quoting conventional 30yr fixed rates of 3.75% to top tier borrowers though there are an aggressive few at 3.625%.  The average quote would have the same contract rate as yesterday with the improvement being seen in the form of lower closing costs.

Despite the modest gains today, the broader short term trend has been toward higher rates.  That said, the longer-term trend has unequivocally been toward lower rates and isn’t yet close to exiting that trend.  While that does mean that those with longer time horizons or more risk tolerance might benefit from floating, rates are so close to long-term lows that the risk vs reward is questionable.  It could become less questionable when and if rates break those recent lows, but until then, 3.625% is as low as average rates have been on a widely-available basis (late January).  We’d need to see widespread availability of 3.5% in order to entertain the possibility that the downtrend is extending.