March 18th Best Mortgage Interest Rates and Lock Recommendation

Here is today's look at best mortgage rates, (which do not include discount points, origination points, or loan level risk based price adjustments) provided by Mortgage News Daily, Freddie Mac, and other sources. Note that Freddie Mac's AVERAGE rates are typically higher than BEST rates, because average rates include surcharges for risks associated with property types, down payments, and credit scores. To be eligible for BEST rates, borrowers need spotless credit (740 score or better), a sizable down payment (20-25%) or equity amount, and stable, adequate, and documentable income. In addition, the property must be located in a healthy (not declining) market and must be conventionally built.

LOCK ALERT *** RATES UP SLIGHTLY DESPITE FAVORABLE ECONOMIC DATA ***

February's Consumer Price Index (CPI) was unchanged from January. this is an important measurement of inflation at the consumer level of the economy. As the economy had been expected to heat up a bit, this report showed the economy was slightly weaker than thought. In addition, last week's unemployment figures showed 457,000 new claims were filed last week. This was a little higher than what was expected and both these pieces of data, showing a weaker-than-anticipated economy, should have pushed bond prices higher and mortgage rates lower. However, lenders backed off their aggressive stance yesterday and increased prices very slightly today.

If closing in the next 30 days, I would LOCK my rate; otherwise, I would 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, and must be made with those in mind.

Liz Freeman has more than a decade of mortgage lending experience. She writes about mortgage and finance issues and is a regular contributor to Mortgage News Daily.