Mortgage Interest Rate Update 06.12.2012

Over the last several weeks mortgage rates have been stable with a few little dips down, and a bump up or two every so often.  No move has seen a real push either way (this is with the most aggressive lenders in the country).  The more conservative lenders out there have been steadily moving down to essentially catch up with the most aggressive lenders.  Be careful when you read about surveys that claim rates went down (or up).  Reason is these surveys are based on averages for hundreds of lenders.  So even if the survey shows rates went down (or up) your most aggressive lenders might have done the opposite or nothing at all. How is that possible?  If you have a survey of 500 lenders and your top 50 (the most aggressive) raised rates just a bit, but your more conservative lenders (450 of them) lowered rates then your survey will show rates went down.

Refinance applications continue to be strong and applications for purchase continue to lag.  Going into the summer I would expect to see a big jump in purchase applications.  Lenders are starting to get swamped with submissions so turn times for approvals are going to be longer than usual.  HARP 2.0 continues to show moderate demand.