Mortgage Rates Level-Off at 3-Month Lows

September 26, 2013

Mortgage rates were unchanged today, keeping them in line with the lowest levels in over three months. This is the 12th business day in a row where rates have either been unchanged or better. Conforming, 30yr Fixed rates remained at 4.375% (best-execution) for most lenders, though some are efficiently priced at 4.25%. Others still have attractive buydowns to 4.125%, depending on your scenario and personal preference. Keep in mind that “points” are neither bad nor good–simply a choice between paying interest up front or over time. An ‘attractive buydown’ connotes a shorter amount of time for the total monthly payment savings to surpass the extra upfront cost required to lower the rate/payment.

Trading was relatively calm today for the mortgage-backed-securities (MBS) that most directly affect lenders’ mortgage rates. As we’ve recently discussed, further progress in this already-impressive move lower in rate will be increasingly tough and would require noticeably downbeat economic data. We didn’t get that today as the final GDP revision was in line with the preliminary reading of 2.5%. Moreover, Initial Jobless Claims were much lower than expected.