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Mortgage Rates Fall Back to Best Levels of 2014

May 7th, 2014 11:00 AM by Jackie A. Graves, President

Mortgage rates fell back to their lowest levels of 2014, with most lenders in similar territory to last Friday.  Market movement was moderate, but grew increasingly positive for MBS (the mortgage-backed-securities that dictate lenders' rates) as the day progressed.  As such, some lenders released positive mid-day reprices.  Before those, rates were just slightly higher on average.  The most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) remains at 4.25%, and is currently closer to 4.125% than the previous rate of 4.375%. Today's improvement was seen in the form of slightly lower closing costs.  That change in costs equates to an effective rate change of 0.02%.

As we discussed yesterday, 4.25% is still technically the outer edge of the longer term range.  That range, stretching back to the beginning of February, has centered on 4.375 and 4.5% but has moved out to 4.25% and 4.625% at it's best and worst moments respectively.  Today's strength makes this move to 4.25% the most aggressive one yet.  While that means we stand a chance to break the range in the coming days, until that actually happens, history suggests more risk associated with floating when we make it down to these levels.

Posted in:General
Posted by Jackie A. Graves, President on May 7th, 2014 11:00 AM

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