Sep 23, 2013

Mortgage Rates Push Further Into 6-Week Lows

According to industry sources mortgage rates continued lower today, bringing rates in line with the lowest levels seen during the past 4 months (officially, 6-week lows as several days have been slightly better during that time). Some lenders are now down to 4.375% for their most efficient combination of closing costs and rate (best-execution) while a majority remain at 4.5%.

Last week's big news regarding the Fed abstaining from any significant policy changes continues to benefit rates.  Several speakers from the Federal Reserve shared their opinions on the topic today and the overall tone reiterated that the economy was not yet likely to make the desired progress without full-fledged stimulus.  Apart from that, news was limited and market conditions were fairly quiet.  This is less likely to be the case as the week progresses and the tone of the economic data should have more of an impact as well.

"Economic Data" refers to various scheduled reports that are released on a set schedule, such as Thursday's GDP and weekly Jobless Claims numbers at 8:30am Eastern.  That combination makes for a relatively potent morning in that if both the pieces of data show the economy in stronger-than-expected territory, rates would likely move higher that day.  Conversely, weaker-than-expected data can help rates move or stay lower.

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% depending on the lender

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