Mortgage rates remain near all-time lows. However, last week was a bumpy road for the mortgage markets. Rates spiked considerably after the release of Fed Minutes that showed some dissension over the Fed's activity in the mortgage markets. Here's more from Mortgage News Daily:
Mortgage rates managed to catch their breath today after rising at the fastest pace since March on from Wednesday through Friday last week. Some lenders offered improved rate sheets on Friday afternoon, while others waited until today to pass along improvements. But in both cases, the bounce back represents only a small portion of the broader losses. Best-Execution for 30yr Fixed, Conventional loans had been firmly planted at 3.25% heading into December, and began to share the stage with 3.375% as the month progressed. By Friday, it had risen to 3.5% for a majority of lenders and remains there today, though some are back in 3.375% territory.
More than a resounding bounce back to lower rates, today's movement in underlying bond markets have been better characterized by "leveling off." There's an eerie sort of indecision that historically can act as the eye of the storm, or can set the stage for a stronger push back in the other direction. It's too soon to tell for now, and the level of market-moving events doesn't really pick up until the middle of the week. Rates could continue to rise, but their relatively elevated levels mean there's some more balance in considering locking vs floating today.
For the full report from MND, click here. According to the site, mortgage rates continue to hover around 3.5%.