With Friday's increases, Mortgages Rates moved to the edge of their recently long and stable stay at a 3.875% Best-Execution level. While some lenders are still best-priced at 4.0%, the average Best-Execution rate moved back down into 3.875% territory today. Keep in mind that "best-execution" refers to the most ideal possible rate/fee scenario and we track this because it's the most consistent way to benchmark the movement of the broader collection of lender rate offerings.
The same thing that has been moving markets and mortgage rates around all week, is once again behind today's general bounce back. Early this morning, one of the leaders of a political party in Greece said that his party could not back the bailout agreement. The execution of this agreement was a key factor pressuring rates higher in general and it required the approval of all three of Greece's political parties. If constant drama surrounding Greece is starting to feel repetitious to you, you're not alone. There is yet another "important day on the calendar" next Wednesday, where Euro-zone ministers will meet again to approve the bailout package if Greece can get its ducks in a row by then.
This is a positive development for the long term trend in mortgage rates as it essentially constitutes a "bounce" against a ceiling at the upper limits of 3.875% best-execution territory. In other words, if rates had gone any higher today, we'd have been decidedly in 4.0% territory. 3.875% is the lowest that best-execution has stably been.