February 26, 2015
FHA mortgage loan rates had been pushed earlier out of a comfort zone that, best execution, had them at or near 3.25% depending on the lender. After February 14, it seems that mortgage rates in general had entered a time of upward pressure, and FHA loans moved out of their long-held comfort zone and into range of best execution rates between 3.25% and 3.5%.
In the last couple of days, mortgage rates have taken a stronger move for the better, with 30-year fixed rate mortgages creeping back from the best execution cliff of 4.0%–rates didn’t actually climb quite that high for 30-year conventional fixed loans, but they approached 3.875% bests execution, which is as close to the 4.0% zone as we’ve seen in some time.
But with mortgage rates in what seems to be a recovery mode now after Fed testimony from Fed Chair Janet Yellen helping to create an environment favorable to rates heading lower, we see 30-year fixed rates coming back down, best execution, to 3.75%. Naturally, best execution rates are not available from all lenders or to all borrowers–your financial qualifications would play a big role in your access to those rates.
What about FHA mortgage loan rates? Have they moved out of the range of best execution numbers we’ve seen them hold steady in since they hit the range of numbers? Not yet–but if rate improvements continue overall, we might see the elimination of that range at some point in favor of a single best execution number.
Some market watchers feel confident that we could be in for a new round of lower rates in the short term–however incrementally small the numbers might move from day to day. There may yet be some volatility, especially if Greek bailout headlines or other EU-related economic news makes the scene to influence rates in the meantime. Treasury markets also have an influence, so you can expect a variety of factors to come into play to influence the rates. But lower numbers are definitely a welcome sign–we’re keeping watch to see how FHA mortgage loan rates might be affected from here.
Do you have questions about FHA home loans? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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