Interest Rates Recover... Sort Of

Rates this morning have recovered slightly from yesterdays sell off. I am anticipating we make up about half the losses we took yesterday. Even if this is true, I do not expect lenders to be very forth coming on the rate sheets. My expectations today is lenders will hedge on their rates sheets pricing slightly worse than they typically would. The simple fact of the matter is yesterday we lost quite a bit of ground... rates went from 4.375% to 4.625% on a conforming 30 year. Because we are moving into a long holiday weekend, banks will price slightly worse than they typically would on your usual business day. This is an order of protection, and business as usual, just something most do not discuss.


If a client is happy with what is currently offered and will be closing soon locking is the play, don't contort my words above to read "float," locking is the play right now. However someone that is a little more exposed to risk, tolerant of market swings, and does not need to lock immediately, may want to float to Tuesday to see how the market opens. Those that do I recommend making sure both you and your loan consultant are willing to make it an early morning. Being up for opening rates sheets and potential reprices would be the smart thing to do.