April 9, 2015
Mortgage loan rates have been up and down since our last report–there has been some volatility that saw rates climbing ahead of last week’s Employment Situation Report, then making strong gains last Friday, which were in turn undone by upward movement the following Monday.
30-year fixed rate conventional mortgage rates have, best execution, climbed to 3.75% as of Wednesday’s reports at market closing time. The release of Fed meeting minutes this week was expected to be a market mover, but rates moved more or less sideways in the wake of the release of that information.
FHA mortgage loan rates have found a “comfort zone” in all this, with a range between 3.25% and 3.5% best execution. FHA mortgage loan interest rates tend to vary more among lenders than their 30-year fixed rate conventional counterparts, so you may see plenty of variation when you shop around for a loan–it’s best to compare a variety of lenders to see where the most competitive rates are being offered.
Keep in mind that whenever the phrase “best execution” is used, it means that those are rates available to highly qualified borrowers with excellent FICO scores and other financial qualifications. Best execution rates are not available to all borrowers or from all lenders. Your experience may vary based on your FICO scores, etc.
Where rates are headed from here is a tough call. At the time of this writing there is still a bond auction pending that could, based on investor reaction to that auction, potentially influence rates one way or the other.
The volatility that has marked the last two weeks of mortgage loan rates may continue into next week, depending on local developments, overseas financial headlines, and investor reaction to same.
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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