The changes in and tightening of credit has made straight 'rate shopping' a thing of the past. OR if it hasn't it should. No longer can you pick up the phone and ask 'what's your 30 year rate today?'

When rates go down as they have over the past half week, the media spreads the word; great for peaking interest in our business, but dangerous in tempting individuals to think they are going to obtain the 'best of the best' rates out there.

Each rate quote these days is affected by credit score first and foremost: 740 or higher for the very top (or in this case lowest rate) followed by incremental increases as the credit score declines. Below 680 the increases to rate and increases to the cost of private mortgage insurance can be staggering and have made it important for the loan officer to take a look at FHA financing as an alternative.

Loan to value: the lower the loan to value the more security for the lender, and therefore the probablity of a better rate. A lower LTV is the next trigger point for rates.

The program: conforming versus jumbo, is still a huge factor. Jumbo rates, with their current lack of secondary market, are still maintaining their larger than normal spread over conforming loans. 

Lenders need the realtors help in educating consumers.