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Mortgage Rates have been operating in the 3.875% best-execution range for several weeks now with the only day-to-day variations being seen in the area of closing costs. That continues to be the case today and in fact, at many lenders closing costs associated with the 3.875% best-execution levels have fallen in line with their lowest levels ever--truly a fitting end to 2011.

Today's BEST-EXECUTION Rates

30YR FIXED - 3.875%, glimpses of 3.75% at the top few lenders.

FHA/VA -3.75%

15 YEAR FIXED - 3.375%

5 YEAR ARMS - 2.625-3.25% depending on the lender

Lock/Float Considerations

This is "it." In a few minutes, bond markets will be closed for 2011 and won't begin trading again until next TUESDAY

The lock/float considerations are essentially the same as they have been.

Rates and costs continue to operate near all time best levels

Current levels have experienced increasing resistance in improving much from here

There are technical reasons for that as well as fundamental reasons

Lenders tend to get busier when rates are in this "high 3's" level and can throttle their inbound volume by raising rates or costs.

Trading sentiment in early 2012 could vary from the low-volume positivity seen here at the end of 2011.

While we don't necessarily think rates are destined to go higher, given the above facts, there seems to be more risk than reward regarding floating

But that will always be the case when rates operate near all-time levels, and as 2011 showed us, it doesn't always mean they're done improving.

From the Equity Investment Capital Family to yours, we thank you for a great 2011 and wish you a merry and prosperous 2012. Happy New Year!