Best Week of 2018 For Rates
Mortgage rates fell again for the second straight day - something that has only happened a few other times so far this year. On an even brighter note, last week was the first week of 2018 where the average lender ended the week offering rates that were at least as good as those seen at the end of the previous week.
For the average lender, that means conventional 30 year fixed rates of 4.375% to 4.500% on top tier scenarios at zero points. The same scenarios were seeing quotes of 3.875% to 4.000% at the beginning of the year.
“Good days" for mortgage rates need some context at the moment. Thursday was a good day too, but it happened to follow the worst day in more than four years (in terms of outright levels). In general, as rates trend higher, we should expect to see these sorts of bounces back from time to time. At some point, one of these bounces could materialize into a broader recovery. While such a move isn't likely to restore the same rates seen earlier in the year, it could nonetheless make a meaningful difference compared to recent highs.
Unfortunately, we still haven't seen enough improvement to conclude that we're on the verge of such a recovery. That would begin to change if this week Is as decent as last week was.
Courtesy of Rick Lombardo 310.435.7439, Rick.Lombardo@grarate.com, VP of Mortgage Lending at Guaranteed Rate.
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