Daily Rate Update: Mortgage Rates Near Highest Levels in More Than 2 Months

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30 Year Fixed
4.54% +0.05
15 Year Fixed
3.53% +0.02
10YR Treasury
2.72% -0.0036
FNMA 30YR 3.5
100.64 +0.05
FNMA 15YR 2.5
102.73 +0.05
View Today’s Rates
Mortgage Rates Near Highest Levels in More Than 2 Months
March 31, 2014
Mortgage rates continued higher today, as part of a 2 day move following 5 straight days of improvement. Nearly all of that improvement has been erased and rates are now in line with the afternoon following the FOMC Announcement on March 19st. That leaves today with the second highest rates since January 9th. When adjusted for day to day changes in closing cost, rates moved 0.05% higher today on average. That leaves the most prevalently quoted conforming 30yr rate for top-tier scenarios (best-execution) well into 4.5%, with a few lenders now approaching 4.625%.

Mortgage rates are most directly informed by mortgage-backed-securities (MBS), which tend to trade with a high degree of correlation to US Treasuries. While MBS and Treasuries are edging back toward positive territory this afternoon (which would be consistent with rates staying flat versus Friday), the morning hours were not only weaker, but also volatile. Some lenders have offered modest improvements over morning rate sheets, but it hasn’t put much of a dent in averages.

Volatility hurts mortgage rates every bit as much as falling prices in bond markets (as prices fall, yields–or interest rates–rise), and more could be in store by the end of the week. The focal point for the volatility will be Friday morning’s all-important Employment Situation Report. It collides head-on with a rate environment that has been exceptionally sideways in the bigger picture. In other words, rates may be near their 2-month highs today, but the range over that time has been 4.375 to 4.5 for the most part. After extended periods of sideways movement in any financial market, there’s more risk that the first departure from the range is bigger than normal.


Loan Originator Perspectives

“The recent trend has not been a friend of rate floaters. Despite worse than expected economic data this morning and very dovish comments from Mrs. Yellen, rates have not been able to recover any of the losses from Friday or this morning but we are off the lows. The direction of rates will most likely be set on Friday when we get the jobs data. Due to early morning weakness, lenders really hammered rate sheets so unless your lender reprices for the better today, I would float over night but be ready to lock early incase the ISM data doesn’t go our way.” –Victor Burek, Open Mortgage

“There is a lot of data out this week that will affect bond yields and pricing. Floating could be very risky especially after Weds ADP report leading into Friday’s jobs report. However, floating has not been a bad call lately.” –Michael Owens, VP of Mortgage Lending at Guaranteed Rate, Inc.


Today’s Best-Execution Rates

  • 30YR FIXED – 4.5%
  • FHA/VA – 4.00%
  • 15 YEAR FIXED – 3.5%
  • 5 YEAR ARMS – 3.0-3.50% depending on the lender

Ongoing Lock/Float Considerations

  • The Fed has stayed the course on their $10bln per meeting reduction in bond buying, though markets have handled it relatively calmly compared to the days of “coming to terms with tapering” in 2013.
  • Rates fell significantly in January, leveled-off in February and took choppy steps higher in March
  • Some mitigating factors had kept rates from moving too far out of a narrow range, including the uncertain impact of weather on recent economic data as well as geopolitical risk surrounding Ukraine
  • As soon as investors can have more confidence that the incoming data is an accurate representation of economic conditions, we should see more willingness for rates to react accordingly, with weaker data helping keep rates lower and stronger data pushing them back toward January’s highs.
  • Barring surprises, even within the very narrow trend from January through March, we’ve seen a slight bias toward higher rates. It will take economic or geopolitical surprises to push back against that momentum.
  • (As always, please keep in mind that our Best-Execution rate always pertains to a completely ideal scenario. There are many reasons a quoted rate may differ from our average rates, and in those cases, assuming you’re following along on a day to day basis, simply use the Best-Ex levels we quote as a baseline to track potential movement in your quoted rate).

30 Year Fixed Rate Mortgage
31?w=360
15 Year Fixed Rate Mortgage
31?w=360&p=15YRFRM

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Today’s Rates

Best Execution hdr_arrow.png
Rate Change
Current Mortgage Rates »
What are best-execution rates?
30 Yr FRM 4.54% +0.05
15 Yr FRM 3.53% +0.02
FHA 30 Year Fixed 4.05% +0.05
Jumbo 30 Year Fixed 4.30% +0.03
5/1 Yr ARM 3.25% +0.02

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.80% 1.10 +0.13
30 Yr. Fixed 4.67% 1.44 +0.13
MBA ** hdr_arrow.png
30 Yr. Fixed 4.56% 0.29 +0.06
15 Yr. Fixed 3.62% 0.24 +0.10
30 Yr. Jumbo 4.45% 0.27 +0.06
30 Yr. FHA 4.16% 0.23 +0.03
5/1 ARM 3.22% 0.32 +0.13
Freddie Mac ** hdr_arrow.png
Current Mortgage Rates »
* FHFA averages are updated monthly.
** Mortgage Bankers Association (each Wednesday) and Freddie Mac (each Thursday) averages are updated weekly.
30 Yr. Fixed 4.40% 0.60 +0.08
15 Yr. Fixed 3.42% 0.60 +0.10
1 Yr. ARM 2.44% 0.40 -0.05
5/1 Yr. ARM 3.10% 0.50 +0.08

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 96.58 +0.09
30YR FNMA 3.5 100.64 +0.05
30YR GNMA 3.0 98.38 +0.06
30YR GNMA 3.5 102.05 +0.02
15YR FNMA 3.0 102.73 +0.05
15YR FNMA 2.5 99.94 +0.02
Treasuries hdr_arrow.png
Yield Change
Current MBS / Treasury Prices »
MBS and Treasury data provided by Thomson Reuters.
Mortgage News Daily and MBS Live! are exclusive re-distributors of Real Time Thomson Reuters Mortgage Information.
Secondary Marketing Managers:
If you are interested in gaining access to the most accurate real-time back-month TBA indications from Thomson Reuters and Tradeweb. Request More Information
2 YR 0.4261% -0.0274
5 YR 1.7184% -0.0295
10 YR 2.7190% -0.0036
30 YR 3.5616% +0.0135
Prices as of: 3/31/2014 4:31PM EST

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About This Report
Mortgage News Daily is a trusted source of mortgage rate market data and analysis, with over 1 million readers each month. Unlike many rate surveys, our survey is conducted on a daily basis and is designed to bring you the most current and accurate rate data available. We use a proprietary formula to calculate averages based on best-execution rates from top lender’s rate sheets, also taking into account feedback from hundreds of mortgage market professionals around the country.
© 2014 Brown House Media, Inc. All rights reserved.
Brown House Media Inc. – 19706 One Norman Blvd – Cornelius, NC 28031
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This information is not an advertisement to extend consumer credit as defined by Section 226.2 of Regulation Z. This is not an offer to enter into an agreement regarding interest rates. The rates quoted do not include discount points, origination points, or loan level risk based price adjustments. Rates presented in this report are averages and are subject to change without notice.
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MBS Commentary – MBS RECAP: Bond Markets Inch Back Toward Positive Territory After Volatile Morning

MBS RECAP: Bond Markets Inch Back Toward Positive Territory After Volatile Morning

Posted to: MBS Commentary
Monday, March 31, 2014 4:01 PM

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The ‘after-hours’ session (3pm-5pm, following the close of Treasury pit trading) is seeing an ongoing trickle of sideways to slightly stronger prices in MBS. The Treasury yield curve is flagrantly favoring the shorter maturities–part of a two-day correction to an even bigger move away from shorter maturities that began in earnest last week.

In plainer terms, this means that yields on 2-5yr Treasuries were rising faster than yields on 10-30yr Treasuries until Friday, and now the opposite has been the case. In fact, 2-5yr yields fell today while 10yr and 30yr maturities …

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MND NewsWire – New Housing Proposals Will Only Make Credit Conditions Tighter – Report

New Housing Proposals Will Only Make Credit Conditions Tighter – Report

Posted to: MND NewsWire
Monday, March 31, 2014 3:39 PM

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Dr. Kenneth Rosen, Chairman, Fisher Center for Real Estate and Urban Economics and Professor Emeritus, University of California, Berkley emerges as a bit of a contrarian in an article in RealtyTrac’s March Housing News Report. Rosen says he is concerned that the new housing finance system that is being built will only serve to sustain today’s tight credit conditions, in itself a situation he calls unsustainable.

He describes the housing market as functioning as a “virtuous cycle;” the first time homebuyer progresses to the trade-up buyer and on to the downsizing buyer. However there is a lot of stickiness in this system and systemic problems that perpetuate sluggish sales. Low savings for downpayments are part of the problem, but a larger obstacle is the current state of the mortgage market.

The federal government is supporting nine out of ten loans and private lenders are lending only to the well-off but both sectors are similarly focused on borrowers with high credit scores and even FHA scores have increased substantially since 2009. Credit this tight leaves many buyers on the sidelines and now there are the new regulations that went into effect in January that are reframing the underwriting process.

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MBS Commentary – MBS MID-DAY: Volatility and Moderate Weakness, but Finally Improving After Yellen

MBS MID-DAY: Volatility and Moderate Weakness, but Finally Improving After Yellen

Posted to: MBS Commentary
Monday, March 31, 2014 11:45 AM

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Bond markets began the week on something of a volatile note. Treasuries had weakened slightly in the overnight session and MBS walked in the door about an eighth of a point lower than Friday’s latest levels (in terms of Fannie 4.0s). They’re currently back at those same levels, but there’s been several back-and-forth swings in the meantime.

The first move down saw a gradual loss of another 4/32nds, bringing bond markets to their worst levels of the day just after 9am. A much weaker than expected reading on the Chicago PMI data failed to have the anticipated result…

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Pipeline Press – FBI Investigating Flood Maps; Jumbo Production Forecast Falls; Proposed AMC Legislation

FBI Investigating Flood Maps; Jumbo Production Forecast Falls; Proposed AMC Legislation

Posted to: Pipeline Press
Monday, March 31, 2014 8:03 AM

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There has been a lot of appraisal news in recent weeks, the most important perhaps being that six government agencies issued a proposed rule that would implement minimum requirements for state registration and supervision of appraisal management companies (AMCs). Just so we’re clear, an AMC is an entity that serves as an intermediary between appraisers and lenders and provides appraisal management services. In accordance with section 1124 of Title XI of the Financial Institution Reform, Recovery, and Enforcement Act of 1989, as added by section 1473 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the minimum requirements in the proposed rule would apply to states that elect to establish an appraiser certifying and licensing agency with the authority to register and supervise AMCs.

The proposed rule would not compel a state to establish an AMC registration and supervision program, and there is no penalty imposed on a state that does not establish a regulatory structure for AMCs. However, an AMC is barred by Section 1124 from providing appraisal management services for federally related transactions in a state that has not established such a regulatory structure. Under the proposed rule, participating states would require that an AMC register in the state and be subject to its supervision, use only state-certified or licensed appraisers for federally related transactions, such as real estate-related financial transactions overseen by a federal financial institution regulatory agency that require appraiser services, require that appraisals comply with the Uniform Standards of Professional Appraisal Practice, and so on – over a dozen more requirements.

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MBS Commentary – MBS Week Ahead: Serious Monotony Problem for Bond Markets; Time to Move on?

MBS Week Ahead: Serious Monotony Problem for Bond Markets; Time to Move on?

Posted to: MBS Commentary
Monday, March 31, 2014 8:00 AM

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For most of 2013, the mission was clear for bond markets. It mostly involved rapid selling and significant amounts of pain for any fans of low interest rates. After a brief correction pulling back from multi year highs to begin 2014, bonds have been ridiculously sideways. 10yr yields (a better proxy for overall momentum in the interest rate world, despite MBS being more germane for day-to-day changes in mortgage rates) have scarcely moved outside a 2.6-2.8 range since mid January. Compared to what preceded it, the range has been so narrow and sideways as to be…

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Daily Newsletter: A Look at Housing’s One-Percenters; Mortgage Rates Higher; Increasing Focus on HELOCS

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dailynewsletter.png
30 Year Fixed
4.49% +0.03
15 Year Fixed
3.51% +0.02
10YR Treasury
2.72% +0.0343
FNMA 30YR 3.5
100.59 -0.20
FNMA 15YR 2.5
102.69 -0.16
View Today’s Rates
Friday March 28, 2014
MND NewsWire – 2:34PM
A Look at Housing’s One-Percenters
CoreLogic Chief Economist Mark Fleming suggests that an examination of housing’s one-percenters might be as valuable an analysis as a glance at that segment’s income and/or wealth distribution …
Pipeline Press – 9:13AM
The CFPB on payday lending & FCRA; increasing focus on 2nds and HELOCs – are we talking not enough or too much?
My cats Myrtle and Gusto are keenly aware that I use a credit card to buy their salmon-infused kibble when it runs low. And so they were very interested to learn that JPMorgan reported …
Mortgage Rate Watch – 5:19PM
Mortgage Rates Higher Today, but Lower on the Week
Mortgage rates finally experienced a correction to the 5-day winning streak that had carried them lower after last week’s spike. On a slightly unsatisfying note, the winning streak …
MBS Commentary – 4:53PM
MBS RECAP: Bond Markets Correct Bullish Run, More Neutral for NFP Week
If you’d like to reduce this week’s activity to a very basic concept and seek to explain just about everything we’ve seen in the past week as a function of that concept, that’s probably …

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Today’s Comments

avatar.aspx MBS Live Chat – 3:38PM
“who is locking in?…”
avatar.aspx MBS Live Chat – 3:39PM
“play defense next week…”
avatar.aspx MBS Live Chat – 3:41PM
“I believe we’ll see selling into NFP on Friday, I personally think pricing is the best it will be until at least Friday….”
avatar.aspx MBS Live Chat – 3:42PM
“We’ve been in a downward price channel for about a month now and we’re bumping up on the upper bound of that channel. I would think seriously about protecting what we have right now….”
avatar.aspx MBS Live Chat – 3:43PM
“brent nailed it. i’d be very cautious with advice to clients leading up to 4/4…”
avatar.aspx MBS Live Chat – 3:52PM
“my only hesitation of locking today is that Monday is the last day of the month….”
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Today’s Rates

Best Execution hdr_arrow.png
Rate Change
Current Mortgage Rates »
What are best-execution rates?
30 Yr FRM 4.49% +0.03
15 Yr FRM 3.51% +0.02
FHA 30 Year Fixed 4.00% +0.00
Jumbo 30 Year Fixed 4.27% +0.02
5/1 Yr ARM 3.23% +0.00

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.80% 1.10 +0.13
30 Yr. Fixed 4.67% 1.44 +0.13
MBA ** hdr_arrow.png
30 Yr. Fixed 4.56% 0.29 +0.06
15 Yr. Fixed 3.62% 0.24 +0.10
30 Yr. Jumbo 4.45% 0.27 +0.06
30 Yr. FHA 4.16% 0.23 +0.03
5/1 ARM 3.22% 0.32 +0.13
Freddie Mac ** hdr_arrow.png
Current Mortgage Rates »
* FHFA averages are updated monthly.
** Mortgage Bankers Association (each Wednesday) and Freddie Mac (each Thursday) averages are updated weekly.
30 Yr. Fixed 4.40% 0.60 +0.08
15 Yr. Fixed 3.42% 0.60 +0.10
1 Yr. ARM 2.44% 0.40 -0.05
5/1 Yr. ARM 3.10% 0.50 +0.08

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 96.48 -0.20
30YR FNMA 3.5 100.59 -0.20
30YR GNMA 3.0 98.31 -0.16
30YR GNMA 3.5 102.03 -0.16
15YR FNMA 3.0 102.69 -0.16
15YR FNMA 2.5 99.92 -0.05
Treasuries hdr_arrow.png
Yield Change
Current MBS / Treasury Prices »
MBS and Treasury data provided by Thomson Reuters.
Mortgage News Daily and MBS Live! are exclusive re-distributors of Real Time Thomson Reuters Mortgage Information.
Secondary Marketing Managers:
If you are interested in gaining access to the most accurate real-time back-month TBA indications from Thomson Reuters and Tradeweb. Request More Information
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2 YR 0.4535% +0.0039
5 YR 1.7479% +0.0279
10 YR 2.7226% +0.0343
30 YR 3.5481% +0.0193
Prices as of: 3/28/2014 4:30PM EST

23623981

This information is not an advertisement to extend consumer credit as defined by Section 226.2 of Regulation Z. This is not an offer to enter into an agreement regarding interest rates. The rates quoted do not include discount points, origination points, or loan level risk based price adjustments. Rates and terms are subject to change without notice.
© 2014 Brown House Media, Inc. All rights reserved.
Brown House Media Inc. – 19706 One Norman Blvd – Cornelius, NC 28031
View this Report in your Web Browser | Forward to a Friend | Subscribe
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