Mortgage Rates Begin Week Little Changed From Friday!

Real Estate Broker/Owner with Tina White Realtor
Dec 19 2011, 2:45PM

Mortgage Rates remain at record lows, both in terms of the Best-Execution interest rate as well as the costs involved in obtaining that rate.  Although the Best-Execution rate has been at 3.875% for several days, associated borrowing costs involved to obtain that rate inched slightly lower to reach a new all-time low on Friday.  The lenders who had been the most aggressively priced saw no improvements today whereas some of the middle-of-the-pack lenders lowered costs marginally, closing the gap somewhat between themselves and the market-leading lenders.

Longer-dated US Treasuries continued to rally today in incredibly light volume, pushed around more by European headlines than the one piece of domestic economic data that showed Homebuilder Sentiment improving.  Despite a healthy amount of economic data, a few more Treasury auctions, and some relatively important news anticipated from Europe, market volumes are understandably expected to be a bit low this week with the impending holidays already removing more than few market participants from their desks.  Those that remain are cognizant of this and will generally wait until all the players get back on the field before continuing the game.

Please make sure to read the "important rate disclaimer" at the bottom of the page in considering what "all-time lows" means.  The issue of "buckets" as described in the lock/float considerations below, remains a factor that may prevent rates and/or fees from moving significantly lower in the short term.


  • 30YR FIXED -  3.875%
  • FHA/VA - Back firmly to 3.75%
  • 15 YEAR FIXED -  3.375%, Approaching 3.25%
  • 5 YEAR ARMS -  2.625-3.25% depending on the lender

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