Mortgage Rate Range Still in Play

The best rates of the week were offered on Wednesday, following the release of the FOMC's monetary policy statement.


The par 30 year conventional rate mortgage remains in the 4.25%-4.50% range for well qualified consumers. To secure a par interest rate on a conventional mortgage you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point loan origination fee. You may elect to pay less in costs but you will have to accept a higher interest rate. Either way, as a consumer you end up paying the costs. You either pay them upfront by rolling into the new mortgage or you pay them over time with a higher interest rate.

Our "float at the MBS price lows, lock at the MBS price highs" strategy has held up quite well this year.

While we do feel that mortgage rates will rise at some point this week, unless you are closing in the next 10 days, floating is acceptable.