Websters defines commodities as:

A good or service whose wide availability typically leads to smaller profit margins and diminishes the importance of factors other than price.

Do most mortgages meet this criteria?  One could argue they do.

We say "most" because there are a few exceptions:

1. There are handful of truly unique products out there that deserve a slight rate premium.
2. Mortgages with "normal" policies deserve a rate premium over mortgages with unusual restrictions (such as variable-rate mortgages that impose IRD penalties instead of just 3-months interest, or 5-year fixed terms that are completely closed for 3-5 years)

Generally, however, most mortgages of the same term are commodity-like.  That leads people to focus on the mortgage with the best rate.

To get a mortgage, however, you have to work with a human being, and that is where the commoditization ends. 

The service that mortgage professionals provide can range from minimal to outstanding.  A mortgage planner that is truly skilled is far from a commodity because there simply aren't that many of them.

Take this example.  Suppose you come across a mortgage planner who does the following:

• Researches every available lender based on your specified mortgage criteria (even non-broker lenders)
• Presents the best rates and features they can find
• Helps you pick the most economical term given future rate assumptions
• Mathematically determines which mortgage has the lowest overall cost based on your 5-year and/or long-term goals 

This type of service adds value to the transaction because it can save the borrower money down the road.  Good advice is unique and it is not a commodity.