September 29, 2016
Mortgage loan interest rates moved higher on Wednesday after a recovery streak that would have hit seven straight business days otherwise.
In many cases borrowers would notice the Wednesday changes in closing costs rather than an actual higher rate, but as market watchers are fond of pointing out, even with recent moves higher we are still seeing rates at respectable lows.
30-year fixed rate conventional loans ended Wednesday at a best-execution rate of 3.375%, while FHA mortgage loan interest rates (best execution) are at or near their current comfort zone of 3.25% depending on the lender. You may notice greater variation in the actual rates offered by participating lenders, so it pays to look for the best rates and terms.
Best execution rates are listed here assuming an ideal borrower with excellent FICO scores and credit history. The rates listed here are not available from all lenders or to all borrowers, your experience may vary.
Some market watchers say today’s rate adjustment is a sign for some that locking, rather than floating, may be a good idea in the current rate environment.
That is to say that another move higher this week is not out of the question, and there are a variety of factors that can affect that including scheduled economic data release (the GDP report and Jobless claims are both due out Thursday, for example), breaking news and other issues.
So if you have not made a mortgage loan interest rate lock commitment with your lender yet, now may be a good time to have a conversation with the lender to get some advice about the rate environment and what may be in your best interests going forward.
It never hurts to have some good advice before you choose to lock or float (which refers to holding off on making a mortgage loan interest rate lock in hopes that rates may go lower before doing so).
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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