Mortgage Rates Still Flat

Mortgage Rates were unchanged yet again to begin the new week, and thus remain near recent highs with 4.625% the most prevalently quoted rate for ideal, conforming 30yr Fixed scenarios.  Some lenders are well-enough priced that 4.5% is available, but it should be noted that most lenders currently have big buy downs to move lower in rate right now (meaning it can cost nearly 1% of the loan amount to drop the rate by .125%).

The financial markets that underlie mortgage rate movements customarily grind to a halt during the last few weeks of the year and today was no exception. Wednesday almost certainly will be an exception, however, as the Fed releases the policy statement that may mark the first reduction in the QE3 asset purchases that began in September 2012.

While markets have done much to prepare for such a day, surveys suggest there's only a 33-49% chance it happens this week. Thus, if it does happen, it would likely have a negative effect on rates. The extent to which a "no taper" decision would benefit rates is a bit harder to predict, but progress toward lower rates is generally harder fought in this environment where rates are expected to move gradually higher.

Either way, today's and tomorrow's rates may be not be seen again for several weeks (or longer) depending on how Wednesday goes. While this is far from likely, it's infinitely more possible than it is on your average Monday/Tuesday. 

Continue to monitor my website www.CallTheMoneyMan.com and follow the section "Rates & Trends".  I will try to keep you abreast of any changes when they occur.