Mortgage rates ricocheted higher today, moving the distance back to the highest levels within the past month. The average national lender is quoting the 30yr fixed rate at 3.75% on top level scenarios, including the more aggressive lenders ahead of tomorrow’s announcement from the European Central Bank (ECB).
Perspectives from Top Originators:
"Bonds lost some ground today but appear to be waiting to see what the ECB does tomorrow. Doesn’t seem to be a clear consensus on what Mario Draghi will say tomorrow so the float or not to float question is definitely a gamble. The trend has not been our friend since mid-February. Not floating today is rolling the dice that Super Mario comes out with a bond friendly message tomorrow morning. Remember hopium isn’t always the best strategy. Especially if you’re closing soon. Rates are still good. I’d still lean towards locking if closing within 30 days." -Jeff Anderson, Loan Officer, Salem Five Mortgage, LLC
"Our "potential" rally yesterday is now in the rear view mirror. Pricing worsened this morning, and a tepid Treasury auction compounded the losses. Rates are now solidly at their highest since late January. It’s times like these that remind originators and borrowers not to get greedy by floating locks too long. I’m in "lock early" mode, the trend is no longer our friend." -Ted Rood, Senior Originator
The views expressed are my own and do not necessarily reflect the views of my employer.
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