Mortgage rates pulled off a repeat performance of last Friday’s intraday drama.  The average lender began the day in higher territory as bond markets were weaker in the morning.  Bonds recovered nicely and mortgage lenders were more than willing to adjust rate sheets accordingly.  After being in slightly weaker shape compared to Friday’s latest levels, the average lender was noticeably better than Friday by the end of the day. 

What does “noticeably better” look like in objective terms? Depending on your existing rate and scenario, it might not look like much.  The industry is pecking away at an all-time low rate range.  Progress at these levels will continue to come in bits and pieces.  Most prospective borrowers would see this change in the form of lower upfront costs to the tune of 0.1-0.2% of their loan amount.  Quoted interest rates would remain the same for most lenders. 

That said, a few lenders’ rates are so close to one another in terms of pricing, that today’s change would indeed result in a rate quote dropping by and eighth of a percentage point (0.125%).  Either way, the scenarios continue seeing rates near 3.0%.

 

By Matthew Graham , dated 2020-06-01 16:43:00

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Courtesy of Mortgage News Daily

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