Mortgage rates have been locked in an exceptionally narrow range for most of the month of June, but especially over the past 5 days. Given that mortgage rates are determined by the bond market where trading levels move constantly throughout the day, it can be useful to consider what’s been happening with those trading levels. Long story short, they haven’t been remotely close to moving any higher or lower than the highs and lows seen last Wednesday.
In other words, Wednesday’s range set the boundaries of the current playing field for rates, and they haven’t left the field since then. In terms of actual changes in mortgage rates, we’re talking about a few tenths of a percent in either direction, and that’s in terms of EFFECTIVE rate (the actual interest rate plus the loan-related upfront costs). Rates themselves have been completely unchanged with lenders quoting conventional 30 yr fixed rates of 3.875-4.0% on top tier scenarios.
The absence of change continues to be a good thing given that rates remain very close to their lowest levels in more than 8 months. Only a handful of recent days have been any better. 4.0% is the most prevalently-quoted conventional 30yr fixed rate on top tier scenarios, though a few of the aggressive lenders remain at 3.875%.