Mortgage rates¬†moved lower¬†today as investors sought safe haven from global political risk in the bond market. ¬†When investor demand for bonds increases, rates generally fall, all things being equal. ¬†Today's improvement was fairly healthy, too. ¬†You'd have to go back to January 23rd--exactly 2 weeks ago--to see anything better at the average lender.
4.25% has been the most common conventional 30yr fixed rate on top tier scenarios. ¬†While that's still technically true, stronger lenders are increasingly moving down to 4.125% on days like today. ¬†Keep in mind that the difference between 4.125% and 4.25% isn't quite as simple as 0.125%. ¬†True, the gap between "contract" rates (which governs the monthly payment) at stronger/weaker lenders would be 0.125%, but the gap between "effective" rates (which take upfront costs into consideration) is typically smaller. ¬†In other words, average lender-imposed upfront costs associated with 4.25% are smaller than the costs associated 4.125%....(read more)Forward this article via email:¬†¬†Send a copy of this story to someone you know that may want to read it.[img]http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=703446