Mortgage rates

barely budged today.  A few lenders were a bit higher than yesterday.  A few more were a bit lower, but most hadn’t moved enough to be considered anything more than unchanged.  Most borrowers would see the exact same quote today compared to yesterday.  4.125% remains the most prevalently quoted conforming 30yr fixed rate, but 4.0% is as close as it’s been since May 28th.

The lack of material improvement in mortgage rates is notable today, considering the underlying markets that most directly affect rates would indicate some improvement.  This is one of the few instances where mortgage-backed-securities (MBS) will be in better shape without any noticeable effect on loan pricing.  This phenomenon actually isn’t that uncommon on the day before a 3-day weekend, and especially when it happens to be the last business day of the month.

Keep in mind that by accepting locks, lenders are increasing the amount of commitments they have in the marketplace.  Generally speaking, it’s riskier to increase the level of commitment ahead of long weekends, especially when geopolitical risk is a market-moving consideration.  Any major change in markets over the long weekend runs the risk of making lenders sorely regret offering locks at what would then be an “out of market” rate come Tuesday.