Just a day after bouncing firmly higher from the lowest levels in a month, mortgage rates are right back down to the bottom of the recent range. For some lenders, there have been one or two days with lower rates over the past, but for most, today is the best in exactly one month. Incidentally, that also puts rates fairly close to the lowest levels in 3 years seen in the immediate wake of the UK vote to leave the European Union (Brexit).
For flawless scenarios, 3.375% is now a more prevalent quote than 3.5% on conventional 30yr fixed loans. At current levels, the most aggressive fringe of the marketplace is beginning to offer 3.25% again–a rate that enjoyed a brief spat of popularity in early July. It should also be noted that government rates (FHA/VA/USDA) have been shining of late, with several lenders offering 30yr rates near or under 3.0%, and the vast majority able to do at least 3.25%. But again, don’t expect to see these rates without a perfect scenario (in terms of credit score, property type, loan purpose, Loan-to-value, etc).
Loan Originator Perspective
Bonds rallied today, as inflation data indicated US prices for consumers and producers both failed to meet expectations. While our gains are welcome, we still remain within the same tight rate range as the past month. Conventional wisdom is that long lived, tight ranges lead to big moves when (not if) the range breaks, but I’m not sure I agree now, given tepid global economic data. Might be a good time to float, just don’t expect rates to drop .25% overnight! –Ted Rood, Senior Originator
I’m going to depart from my usual consideration of recent and near future economic events to take a broader view today. Rates are heading lower. They won’t now of coarse since I’ve said this out laud but that’s my opinion and I’ll stick to it I guess. This has been a safe call for the past 10, 20, 30 years so I’m not on a limb by any stretch. Borrowers should always consider than rates can go up short term even during a down trend so this isn’t a call for everyone to float till closing. I’d just be a little more bold when deciding if I’d lock or float. –Jason B. Anker, Vice President- Loan Officer at Salem Five
- 30YR FIXED – 3.375%
- FHA/VA – 3.0 – 3.25%
- 15 YEAR FIXED – 2.75%
- 5 YEAR ARMS – 2.75 – 3.25% depending on the lender
