October 2, 2015
At the end of the business day on Thursday, mortgage loan rates had fallen again, making a fourth straight day this week of improvement ahead of today’s (Friday) jobs report.
That report (the “Employment Situation Report”) has the potential to move rates in either direction depending on the contents of that report and investor reaction to it.
Borrowers who have been floating up to this point–not making an interest rate lock decision/agreement with the lender–should know that while there’s always a risk associated with floating, the risk increases with scheduled economic data releases like this one.
Best advice if you aren’t sure–ask your lender which way he or she thinks the wind is blowing, so to speak, with rates at the moment. The numbers are very good at this point in time, and your risk tolerance for a rate increase should definitely inform you choice to lock or float regardless of circumstances.
At the time of this writing, 30-year fixed rate conventional mortgages have been reported in a range between 3.75% and 3.875% best execution. Our sources say that for the present, these rates are “solidly” in the sub-four percent range, but next week’s trends may or may not help this continue.
FHA rates broke out of their comfort zone this week of 3.75% best execution and are now in a range between 3.5% and 3.75%. Remember, best execution rates are available to the most financially qualified borrowers, who bring outstanding FICO scores and other factors to the loan process. These rates are not available to all borrowers or from all lenders–your experience may vary.
Today’s Employment Situation Report is a much anticipated release–we’ll have the details on what that report might do for rates in tomorrow’s post.
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: 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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