Here is today's look at best mortgage rates provided by HSH.com, Mortgage News Daily and other sources. These do not include loan-level risk-based price adjustments imposed by Fannie Mae and Freddie Mac. Note that average mortgage rates are typically higher than the best mortgage rates, because average rates include surcharges for risks associated with property types, down payments and borrower credit scores. To be eligible for the best rates, borrowers need excellent credit with a score of 740 or better, a sizable down payment or equity amount of 20 to 25 percent and stable, adequate, verifiable income. In addition, the property must be located in a healthy, not declining market and must be conventionally built. Condominiums, manufactured homes and farms do not apply.

LOCK ALERT *** RATES FLAT ON VERY LIGHT TRADING **

As expected, the bond market opened up 2/32 of a point, which should improve this morning's mortgage costs by approximately 0.125 of a discount point from Friday's morning pricing. The decrease may be short-lived, though, as stock prices are up thanks to global good news about the Chinese and German economies that came in over the weekend. When stock prices increase, they often bring mortgage rates along for the ride.

Additional inflation concerns stem from the increase of oil prices by 2 percent, to $100.70 a barrel. Once again, there is a greater downside associated with floating your mortgage rate, and I recommend locking if you can.

If closing in the next 30 DAYS, I would LOCK my rate. Otherwise, I'd FLOAT my rate. This is only an opinion: What I would do if I were closing a mortgage at this time. Your decision may depend on other factors, such as the strength of your loan approval and your tolerance for risk.

Here is today's look at best mortgage rates provided by HSH.com, Mortgage News Daily and other sources. These do not include loan-level risk-based price adjustments imposed by Fannie Mae and Freddie Mac. Note that average mortgage rates are typically higher than the best mortgage rates, because average rates include surcharges for risks associated with property types, down payments and borrower credit scores. To be eligible for the best rates, borrowers need excellent credit with a score of 740 or better, a sizable down payment or equity amount of 20 to 25 percent and stable, adequate, verifiable income. In addition, the property must be located in a healthy, not declining market and must be conventionally built. Condominiums, manufactured homes and farms do not apply.

LOCK ALERT *** EXPECT IMMINENT RATE DROP ***

Today is a slow day for American traders because of the Martin Luther King, Jr., holiday, which closed U.S. markets and most lenders. However, Europe does not celebrate MLK day, and things are being shaken up. Overseas markets are feeling the effects of last week's downgrading of several countries by S&P: Stocks are taking a beating, and the bears are out in force.

In after-hours trading, 10-year Treasurys have dropped almost 0.10 percentage points. Mortgage rates should follow suit when the gates open on Tuesday. I'd expect lenders to price aggressively. They would have been cautious on Friday going into a long weekend. Unless something big happens this afternoon or evening, expect mortgages to cost a bit less on Tuesday.

If closing in the next 30 DAYS, I would LOCK my rate. Otherwise, I'd FLOAT my rate. This is only an opinion: What I would do if I were closing a mortgage at this time. Your decision may depend on other factors, such as the strength of your loan approval and your tolerance for risk.

Here is today's look at best mortgage rates provided by HSH.com, Mortgage News Daily and other sources. These do not include loan-level risk-based price adjustments imposed by Fannie Mae and Freddie Mac. Note that average mortgage rates are typically higher than the best mortgage rates, because average rates include surcharges for risks associated with property types, down payments and borrower credit scores. To be eligible for the best rates, borrowers need excellent credit with a score of 740 or better, a sizable down payment or equity amount of 20 to 25 percent and stable, adequate, verifiable income. In addition, the property must be located in a healthy, not declining market and must be conventionally built. Condominiums, manufactured homes and farms do not apply.

LOCK ALERT *** EUROPE, BAD; MORTGAGE RATES, GOOD ***

Today, S&P lowered the boom on nine European nations' credit ratings, prompting a stock selloff, a run on bonds, and a drop in mortgage rates to new record lows. Italy, Spain, Portugal, Cyprus, France (the big deal), Malta, Slovakia and Slovenia all got downgrades, making it more difficult and more expensive for these countries to borrow money.

This was not unexpected; investors have been expecting something like this for weeks. More alarming, though, was the statement issued with the downgrades. S&P warned that most eurozone governments could face additional downgrades, due to a "more adverse economic and financial environment."

This news makes the U.S. a safer market, relatively speaking, and U.S. bonds an economic bomb shelter -- at least for now. If you can lock long-term (60-plus days) for 0.25 percent or less, I'd say do it. Otherwise, grab 30 days, which you should be able to get for free or at a cost of 0.125 percent, max.

If closing in the next 30 DAYS, I would LOCK my rate. Otherwise, I'd FLOAT my rate. This is only an opinion: What I would do if I were closing a mortgage at this time. Your decision may depend on other factors, such as the strength of your loan approval and your tolerance for risk.

Here is today's look at best mortgage rates provided by HSH.com, Mortgage News Daily and other sources. These do not include loan-level risk-based price adjustments imposed by Fannie Mae and Freddie Mac. Note that average mortgage rates are typically higher than the best mortgage rates, because average rates include surcharges for risks associated with property types, down payments and borrower credit scores. To be eligible for the best rates, borrowers need excellent credit with a score of 740 or better, a sizable down payment or equity amount of 20 to 25 percent and stable, adequate, verifiable income. In addition, the property must be located in a healthy, not declining market and must be conventionally built. Condominiums, manufactured homes and farms do not apply.

LOCK ALERT *** RATES NEARLY UNCHANGED, LENDER FEES UP ***

Tosay's Treasury auction was well-received, and that caused bond prices to increase and yields (interest rates) to decline. However, that trend did not materialize in the mortgage-backed securities (MBS) market. Many lenders are keeping fees higher than they need to; when demand for mortgages exceeds a lender's capacity to provide them, it responds by increasing fees to temper demand. That may be happening across the board right now.

If you're buying a home with a mortgage now, shop before you lock to make sure your rate offer is fair. If refinancing, don't pull the trigger unless rates and costs fall within your target range.

If closing in the next 15 DAYS, I would LOCK my rate. Otherwise, I'd FLOAT my rate. This is only an opinion: What I would do if I were closing a mortgage at this time. Your decision may depend on other factors, such as the strength of your loan approval and your tolerance for risk.

Here is today's look at best mortgage rates provided by HSH.com, Mortgage News Daily and other sources. These do not include loan-level risk-based price adjustments imposed by Fannie Mae and Freddie Mac. Note that average mortgage rates are typically higher than the best mortgage rates, because average rates include surcharges for risks associated with property types, down payments and borrower credit scores. To be eligible for the best rates, borrowers need excellent credit with a score of 740 or better, a sizable down payment or equity amount of 20 to 25 percent and stable, adequate, verifiable income. In addition, the property must be located in a healthy, not declining market and must be conventionally built. Condominiums, manufactured homes and farms do not apply.

LOCK ALERT *** RATES BOUNCE UP FROM LOWS ***

Not surprisingly, rates corrected slightly after hitting all-time lows Monday. Interestingly, the slight weakness in mortgage-backed securities markets today was not enough to account for the pricing increases implemented by a number of lenders. That's your cue to shop before you lock, because rate increases are not necessarily tied to an across-the-board rise in lender costs, and not all mortgage companies have upped their pricing.

Tomorrow's Treasury auction of 10-year notes, if well-received, could trigger roll-backs in mortgage pricing. Stay tuned.

If closing in the next 15 DAYS, I would LOCK my rate. Otherwise, I'd FLOAT my rate. This is only an opinion: What I would do if I were closing a mortgage at this time. Your decision may depend on other factors, such as the strength of your loan approval and your tolerance for risk.