August 27, 2015
You may have noticed we’ve been posting more this week on mortgage loan interest rate trends: overseas economic headlines from China and elsewhere have contributed to a volatile market environment that can definitely affect mortgage loan interest rates, so we’re posting more as the situation warrants.
Mid-week, mortgage rates began creeping higher, but this time influenced by bond market activity–our sources point to a weak five-year Treasury auction that began putting upward pressure on mortgage loan rates in the afternoon on Wednesday, resulting in a range of best execution rates for 30-year fixed rate conventional mortgages between the previously reported 3.875% and 4.0%. Yes,we’re getting back into that old, familiar 4.0% zone, at least in the short term.
FHA mortgage loan rates have not, best execution, budged from the 3.75% comfort zone we’ve been reporting on for some time now. Borrower take note, FHA mortgage loan rates can vary more among participating lenders than their conventional mortgage counterparts.
As always, small, incremental changes in mortgage loan rates may not always be reflected in the rate itself, but may appear as changes in your closing costs.
It’s always a good idea to shop around for the most competitive rates. Remember, the numbers you see reported here are described as “best execution” because they are offered to borrowers with the best FICO scores and other financial qualifications. Your experience may vary.
Going advice in the “lock versus float” department? Some industry pros say lock if you’re closing within 30 days, float if you’re closing later than that. Locking and floating are choices only the borrower can make–it’s a very good idea to do your research, ask your lender for advice, and make the most informed choice possible. Short term trends may or may not last; long term trends depend on a variety of factors that the typical home buyer might not have any experience or expertise in.
Do you work in residential real estate? You should know about the free tool offered by FHA.com. It’s designed especially for real estate websites–a widget that displays FHA loan limits for the counties serviced by those websites.
It is easy to spend a few seconds customizing the state, counties, and widget size for the tool; you can copy the code and paste it into your website with ease. Get yours today: http://www.fha.com/fha_loan_limits_widget
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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