Mortgage rates were slightly higher today, erasing some of the gains seen on Friday, but remaining well within the recent range. The most prevalently-quoted conforming 30yr fixed rate for top tier borrowers had clearly been 4.0% on Friday, but today’s weakness makes 4.125% nearly as common. That said, the shift isn’t due to the size of the move in rates today, simply the fact that we were very close to the edge of the range to begin with.
Most mortgage companies will be closed tomorrow for Veterans Day. Lenders that remain open to accept locks will not have the benefit of the bond market being open. In these cases, rate sheets are either a carbon copy of the previous business day’s or they’re slightly worse. That means you’ll be waiting until Wednesday before having an opportunity to see any significant changes.
Loan Originator Perspective
“Mortgage bonds were lower today giving up some of Fridays gains. Traders may be playing it safe with the bond market being closed tomorrow. I don’t think there is an immediate need to lock on today’s weakness. ” -Manny Gomes, Branch Manager Norcom Mortgage
“Tomorrow’s holiday and bond market closure create even more uncertainty for the week. I like the range we’re in, but today unfortunately took us right to the edge of the upper limits. As long as we can hold this range, floating may not be a bad idea. Loans closing within 15 days are locked, 30 days out are floaters for me.” -Constantine Floropoulos, Quontic Bank
“With bond markets closed tomorrow, you either lock today or float until Wednesday. MBS have given back about half the gains from Friday, but keep in mind it is happening during very low volume. With tomorrow being a holiday, many investors are absent today. All that said, i think floating is the way to go. The only loans i would consider locking today would be those closing within the next 2 weeks. ” -Victor Burek, Open Mortgage
“With a holiday tomorrow, I’m not putting much significance on today’s movement. I’m personally suggesting to wait until Wednesday to make specific lock float decisions, as I think we may get some real guidance moving forward. Until then, if given the opportunity, thank a Veteran!” -Brent Borcherding, brentborcherding.com