Mortgage Rates Still Unchanged Ahead of the Fed's Announcement

Mortgage Rates are still unchanged, but they are edging higher on the MBS data, even though the rate of 4.5% remains the most prevalently quoted conforming 30yr fixed rate for ideal scenarios.  Some lenders may be trying to adjust their fees (Discount Points) to keep their quotes at this level.

Although rates have managed to stay in this lower range for the past two weeks, I do believe we have hit the bottom as we are now approaching a fork in the road you might say.  The FOMC (Fed’s) Announcement is going to dictate which path the rates will take.  This announcement will give them a  chance to either stay on the same path with respect to reducing its bond buying (which benefits rates), or to pay some mind to the last jobs report, either by slowing down the pace of tapering or holding off altogether for one cycle.

As I mentioned yesterday, if they do not take a slower approach, this low range of rates may well end up being the floor.  The fact that we have not  been able to move any lower the last few days suggests that the rate movement has also come to this fork in the road and is waiting to turn one way or another – as we all wait for next big event if it's going to make any further progress.

In summary, the roller coaster that we are on is currently stuck on the top rail and is sliding in different directions as the weight shifts one way or another.  History has proven that it is not uncommon for rates to start sliding in one direction or the other even before the news takes place.  With the longer-term trend still pointing toward higher rates, this recent resistance to go even lower, with the decision to lock or float before next Wednesday’s FOCM (Fed’s) decision is evident – best to go ahead and lock before any further slip occurs. 

Today's Best-Execution Rates

• 30YR FIXED - 4.5%
• FHA/VA - 4.25%
• 15 YEAR FIXED -  3.5%
• 5 YEAR ARMS -  3.0-3.50%