Mortgages Rates are back down to Tuesday's levels, near the lowest in several months. Yesterday's FOMC-related events caused lenders to price rate sheets somewhat conservatively before the actual information was released. Since then, markets have calmed and the bond markets that affect mortgage rates--namely MBS ("Mortgage-Backed-Securities") are slightly improved.
That improvement basically solidifies 3.875% as the current Best-Execution Rate for 30yr Fixed Conventional loans (read more about Best-Execution calculations). Although this isn't true for all lenders, on average, rates are very close to being as low as they've been since February.
Yesterday, we referred to the FOMC-related events (Announcement, Member Forecasts, and Bernanke Press Conference) as a collective "dud," and noted that the uneventful passing of those events put more focus on the economic data in the near future. We got a good example of that this morning when a weaker-than-expected Jobless Claims report helped bond markets solidify and improve upon their overnight gains.
That said, there is even more meaningful data in the near future. Most immediate is tomorrow morning's first look at Q1 GDP. That definitely has market moving potential, but the biggest report in the near future arrive next Friday with the Employment Situation Report. When considering that the upcoming economic data has the potential to take rates in either direction, we'd note that rates in general have had a hard time going much lower than current levels.
In other words, historically, there have been diminishing returns for floating vs locking when rates are this low. That's not to say that this scenario couldn't change in the future, merely that it hasn't so far.
Today's BEST-EXECUTION Rates
30YR FIXED - 3.875%
15 YEAR FIXED - 3.125-3.25%
5 YEAR ARMS - 2.625-3.25% depending on the lender
Ongoing Lock/Float Considerations
Rates and costs continue to operate near all time best levels
Current levels have experienced increasing resistance in improving much from here
Rates could easily move higher or lower, but given the nearness to all time lows, there's generally more risk than reward regarding floating
But that will always be the case when rates operate near all-time levels, and as 2011 showed us, it doesn't always mean they're done improving.
(As always, please keep in mind that our talk of Best-Execution always pertains to a completely ideal scenario. There can be all sorts of reasons that your quoted rate would not be the same as our average rates, and in those cases, assuming you're following along on a day to day basis, simply use the Best-Ex levels we quote as a baseline to track potential movement in your quoted rate).
Article c/o Mortgage Daily News
Low mortgage rates means more home for your MONEY! Check out great homes in Coppell.
JP And Associates REALTORS (JPAR) is one of the top 100 independently owned brokerages in the US. A full service real estate brokerage firm specializing in real estate sales and marketing services with multiple offices across the US and expanding quickly. JPAR is also one of Real Trends top 500 Brokerages in the US for volume and sales and in the top 1% in the US for sales.
Our mission is to provide extraordinary services and exceed our clients’ expectations by always committing to the highest levels of professionalism, ethics and standards in the real estate industry.
JP and Associates REALTORS is a real estate company with a solid structure and foundation built around service and productivity. We believe in providing a fun and rewarding environment for all our REALTORS® and therefore always ready to support our REALTORs® Associates in any market and in any condition. All our REALTORs® will always strive to close more transactions in a given year than the average REALTOR®. Our goal is to recruit and retain the most professional, better trained REALTORs Associates in the local market.
If you are interested in a new career in real estate or already have a real estate license but wish to learn more about our company please contact us directly to set up an interview. We offer our agents a 100% commission plan, company leads, training and mentoring and coaching from TOP Producers with no office, desk fees or monthly marketing fees ever. We are a full service brokerage at a transaction fee cost.
At JP And Associates REALTORS we strive to exceed our Clients AND our Associates expectations.
General Inquiries: firstname.lastname@example.org
Office Number: 1 (800) 683-5651
Texas Real Estate Commission Consumer Protection Notice
15,014 Homes Sold Yesterday… Did Yours?There are some homeowners tha
"John was extremely patient, forthright and professional all during our working relationship. He was courteous with my wife and son while thoroughly answering every question that we would raise. John was very responsive to our numerous request for showings and always was timely and followed through on all leads. I would highly recommend John as your agent, regardless of the scope of your purchase. He will represent you very well in one of the most important decisions that you will make."