Mortgage Rates Once Again Hit the Lows of 2010, Still Locking

Mortgage rates rallied yesterday following disappointing economic data on jobs and manufacturing. Benchmark treasuries led the way moving lower in yield allowing MBS prices to steadily rise throughout the entire trading day. The price gains allowed all lenders to reprice better bringing mortgage rates once again to the lowest levels of 2010 and very near historic lows we saw last year.

We have no economic data today.

Reports from fellow mortgage professionals indicate the par 30 year conventional rate mortgage remains in the 4.50% to 4.75% range for well qualified consumers. To secure a par interest rate on a conventional mortgage you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point loan origination/discount/broker fee. With the price gains from yesterday, if a interest rate was costing you 1 point, today it should only cost you .625 points. Lenders are reluctant to lower the par rate, instead the gains are being passed along with either lower costs or a larger lender credit.
I continue to favor locking. I see no reason to gamble with rates back to the best level of 2010.

Have a great weekend. On a side note, congratulations to the Los Angeles Lakers who beat my beloved Celtics last night to win the NBA Championship. Despite my sadness it was a great series and a pleasure to watch. All I have to say now is Go Red Sox!