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Mortgage Rates Lower for 4th Straight Day

Mortgage rates moved noticeably lower to begin the week, continuing a winning streak that began last Wednesday. Today's improvement brings the total improvement over 4 days to one-eighth of a percent and also fully erases the damage done by the strong jobs numbers on Nov 8th. In other words, today's rate sheets are as good as they've been since Thursday Nov 8th. The most prevalently quoted conforming 30yr fixed rate for ideal scenarios (best-execution) now moves down to 4.25%.

The mortgage-backed securities (MBS) that most directly affect mortgage rates were calm and steady this morning, and only benefited from weaker-than-expected economic data. The National Association of Home Builders and Wells Fargo released the Housing Market Index which came in at the lowest levels since June. More important economic data arrives on Wednesday and Thursday.

Loan Originator Perspectives

"Leading up to NFP on November 8th, I suggested a defensive posture with my clients and was mostly locked up. Since that time, I haven't recommended locking, until late last week and today. I'm back on a defensive, lock-em-up posture with clients. I'd much rather be wrong with lower rates than higher." -Matt Hodges, Charlottesville Sales Manager, Presidential Mortgage Group

"Nice rally today, but many lenders have yet to pass along the improvements. We have no data being released tomorrow morning, so I like floating everything overnight." -Victor Burek, Open Mortgage

"Nice start to the week today as MBS and mortgage pricing improved. Fed speakers and minutes throughout this week will shed more light on their sentiment. We're essentially in a holding pattern at moment, sure tempting to lock in gains rather than risk giving them back." -Ted Rood, Senior Originator

Today's Best-Execution Rates:

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by Matthew Graham