August 26, 2015
Mortgage loan rates weathered the stock market storm on Monday, but Tuesday’s market activity brought slightly higher rates. It’s been a tough time for those watching market activity hoping for a mortgage loan interest rate rally, but numbers are still sub-four percent (best execution) and we even saw reports of some lenders offering 30-year fixed rate conventional best execution rates as low as the FHA comfort zone rate (3.75%) on Monday.
But rates edged higher on Tuesday, putting things more solidly into the previously reported 30-year fixed rate conventional mortgage loan rate of 3.875%-which is still prevalent at the time of this writing. Wednesday’s activity, at the time of this writing, hasn’t even emerged solidly, but it’s definitely going to be an interesting ride to the end of the week.
As mentioned above, 30-year fixed rate conventional mortgage loan interest rates are holding in their best execution rate of 3.875% which we reported last time. How long that rate persists remains to be seen–there’s likely some more up-and-down activity to come as markets get sorted out. FHA mortgage loan interest rates are holding in the 3.75% best execution comfort zone, and if there’s any shift in that rate, it’s likely to be into a range of rates. Whether 3.75% is the upper end of that range or the lower end depends greatly on what happens over the next few days.
Remember, best execution rates assume ideal conditions–your FICO scores and other financial qualifications will play a big part in determining your access to such rates. Your experience may vary. Not all lenders offer these rates.
The going advice from many industry professionals is to lock in the short term, with some saying those 3o days out from closing or more may be more comfortable thinking about floating. There’s always a degree of risk with floating, so consider your options after doing some research and asking plenty of advice.
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’s simple 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 at 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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