Mortgage rateswere modestly highertoday after hitting the lowest levels since early November at the end of last week. Along with mid-April, this is the second time rates have been in this territory in more than 7 months. Most prospective borrowers will see very little--if any difference between Friday's rate quotes and today's. Certainly, the NOTE rate itself will be unchanged, with any deterioration limited to the upfront costs that impact the EFFECTIVE rate (similar to APR).
With rates being driven by financial markets and with investors generally on edge ahead of Thursday's congressional testimony from former FBI Director Comey, it makes sense to Friday's momentum to ebb to some extent. Thursday should remain a focal point for volatility this week. Remember, volatility (and thus, the risk of floating vs locking) goes both ways. If Thursday ends up being a watershed moment in US political history--as some suggest--rates could easily continue to new lows for 2017. If, on the other hand, the testimony is anticlimactic or casts Trump in a favorable light, rates could rise very quickly....(read more)Forward this article via email:Send a copy of this story to someone you know that may want to read it.