Mortgage Rates Are at Worst Levels Not Seen Since May

Mortgage rates did not move much today, which is a victory unto itself on a week with three of the worse consecutive days of the year.  In fact, those banks that changed rates at all today generally offered slight improvements in terms of upfront costs.  In other words, quoted rates remained unchanged, but some lenders slightly decreased the costs associated with those rates (or increased the available lender credit) by a fraction of a point.

With Christmas holidays already underway. Congress now gone from Washington after passing a short-term funding bill to keep the government from shutting down. 

Despite the presence of several economic reports that would typically have some impact on intraday rate movements, bond markets were stone silent today - a reflection of the impending holiday weekend.  In the shortened week that follows, traders tend to play things conservatively, meaning risk and reward for floating is still a danger, but the option is there to be used with a lot of caution.

In summary, it was a predictably slow day in bond markets today, as prices eased up slightly.  While we did not lose further ground, we are still near the worst levels since last May.  The rest of this year will likely be sedate, until January arrives with more budget and infrastructure improvement DC drama.  I am being cautious, but still locking applications within 30 days of closing, as there is no reason to float here. 

Have a Very Merry Christmas Everyone!