Mortgage Rates

In regards to mortgage rates, September was a stagnant month. Just after the middle of the month, rates were slowly increasing with a near promise of higher rates to come.

Mortgage rates trends have been on a bit of a rollercoaster with a slight increase in mid-September to a quick rise in the later part of the month and into early October. This last week, however, mortgage rates have dropped to their lowest levels in a month with national averages back at the 3.875-4% rates.Banks are expecting higher rates to come as the end of the year approaches, which means fewer lender credits or higher upfront costs when closing despite having the same averages as this time last month, reports Mortgage Daily News in their October 17th report.

When considering whether to float on the mortgage rates, Ted Rood, a senior originator and regular contributor to Mortgage Daily News, says “Bonds continued hanging within their narrow recent ranges today, and my pricing was virtually identical to Monday’s. Not sure what it will take to jolt rates higher/lower from here, but it appears significant motivation will be required. Floating could net small returns, the question is whether it’s worth the risk, given likelihood of minimal gains. If you do float, be prepared for pricing to get worse, it happens regularly!”

Federal trends throughout most of the year have been anywhere from a tenth of a percent to a quarter percent lower than local trends.This has been particularly true when national trends dropped to an average of just under 4%. Local banks held onto their higher rates hanging around 4.0 to 4.15%. October local rates are averaging the same or slightly higher than last month likely due to the national uncertainty.

Here’s a few local mortgage rates, according to bankrate.com, based on a 30-year fixed rate with a loan of 300,000:

Bank Rate
Community First Bank and Trust 4.153
Regions 4.277
HSBC bank 4.060
Pinnacle Bank 4.022
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