The SCOOP! Blog by ChangeMyRate.com® 'Stress-Free Mortgages'

Mortgage Rates Back to October's Range

November 17th, 2013 2:06 PM by Jackie A. Graves

Nov 15 2013

Mortgage rates fell just slightly today, though this wasn't the case for every lender.  Rate quotes are likely to be at the same note rate as yesterday's, but with slightly lower borrowing costs on average.  This means that the most prevalently quoted conforming 30yr fixed rate for ideal scenarios (best-execution) remains on the stronger end of 4.375%, with 4.25% becoming increasingly viable.

In this context, "increasingly viable" can be thought of as follows.  On any given day, one or two rates are going to make "more sense" than others in terms of payment and closing costs.  For any given scenario, if you use a "no point / no origination" quote as your baseline, you would assess whether or not it made sense to move to a lower rate based on how much the closing costs increased.

Deciding what makes more sense is largely a factor of personal preference, but borrowers are generally more interested in moving to lower rates when it will take less than 5 years (roughly) to break even on the extra expense.  This is the case with 4.375% and 4.25% at most lenders at the moment, and borrowers will increasingly be interested in moving down to 4.25% even if it increases closing costs slightly.  To rephrase this definition of "increasingly viable," 4.25% has good bang for the buck once again--something it lost during the past week of interest rate volatility.

 

Posted in:General
Posted by Jackie A. Graves on November 17th, 2013 2:06 PM

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