For How Long Is A Mortgage Rate Quote Valid? Currently, Less Than 6 Hours.

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As stock markets finish a quarter marked by high volatility, mortgage pricing seems to have settled down a bit. Last month, for the first time in more than a year, mortgage lenders held their morning pricing all the way through market close.

This is an odd development, though; incongruent with market data. Since March, mortgage markets have been exposed to massive government intervention, the emergence of both a Bull and Bear stock market, and countless questions about the health of the economy.

Normally, this would cause mortgage rates to bounce all over the place. Last month, it didn't.

And while there's no evidence for proof, this loan officer thinks rates are suddenly less volatile because lenders aren't pricing loans on razor-thin margins anymore.  As bond markets pressured bond prices lower in March, mortgage lenders chose to hold their rates up, and pocket the difference as profit.

It's like a gas station keeping pump prices high as the cost of oil falls.

In the minds of rate shoppers, rate sheets aren't changing much, creating the semblance of mortgage market stability.  This point is illustrated in the graph above.  The reality, though, is something entirely different. Mortgage markets have been extremely volatile lately and we may someday find out that lenders left rate sheets as-is last month because the printed price guides had already been stuffed thick with profits meant to withstand market shock.

Rates are changing every 5 hours, 32 minutes on average. This is two hours longer versus January.

The good news here is that home buyers and refinancing homeowners don't have to rush to get their pricing locked up as quickly are they to. The bad news is that today's rates may be artificially pumped up.