December 1, 2015
Monday saw no significant activity for mortgage loan interest rates following the long weekend. Tuesday could be–barring any breaking news or unexpected investor activity–equally quiet in anticipation of very important economic data releases coming later in the week.
Wednesday through Friday there is increased potential for volatility based on the contents of reports including employment statistics, jobless claims, and more. Depending on the contents of these reports–and any breaking news that may occur in the meantime domestic or international–there’s increased risk of upward movement on mortgage loan rates this week.
Industry professionals seem to be using the word “lock” more, pointing out that the closer we get to these economic data releases, the higher the risk of floating, or delaying an interest rate lock commitment with the lender in hopes of getting a more competitive interest rate.
30-year fixed rate conventional mortgage loans still hold in a best execution range between 4.0% and 4.125%. FHA mortgage loans are in their comfort zone of 3.75%, and as always, you may find greater variation among participating lenders than you would with a conventional equivalent. It pays to shop around for the best rate.
Best execution rates assume ideal conditions such as a well-qualified borrower and the availability of a lender willing to offer such a rate. The rates you see here are not available to all borrowers or from all lenders–your FICO scores, loan repayment history and other factors will determine your access to these rates. Your experience may vary.
Do you work in residential real estate? You should know about the free tool offered by FHA.com. It is designed especially for real estate websites; a widget that displays FHA loan limits for the counties serviced by those sites. It is 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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