January 10, 2017
Though the borrowers affected by Monday’s move lower may find the resulting improvements reflected in closing costs rather than in actual mortgage rate changes (depending on the lender), the start of the week did find rates moving low enough to erase the upward movement from the end of last week.
Market watchers have stated that we’re entering a phase where there are hopes of an overall downward trend, but it’s too early to call it as such. What we seem to have at the moment is a pushback against the higher movement that began post-election, but whether that’s a short-term bump in the road or not can’t be determined…yet.
On Monday, 30-year fixed rate conventional mortgages moved more decisively into a best-execution 4.125%, which basically means that more lenders are offering that best execution rate now than they might have done previously. Rates were flirting with the mid-four percent range at the worst of the post-election upward swing; any move back towards the bottom end of the four percent zone and possibly even upper three percent range is definitely welcome.
FHA mortgage loan rates continue in their 3.75% range best execution. Rates for FHA mortgages may vary more among participating lenders than conventional rates do, so it pays to keep shopping around for the best rates if you haven’t settled on a lender.
The rates seen here are listed as best execution rates, which assume ideal conditions including a well-qualified borrower and the presence of a lender willing to offer those rates. Your experience may vary and your access to rates like the ones seen here depends greatly on your FICO scores and other financial qualifications.
At the time of this writing, the word “float” has cautiously entered the conversation among industry professionals, though borrowers within a short-term window of time before closing (some say 30 days, others may advise locking for longer windows in the short term) are still being urged to consider locking in an interest rate commitment with the lender.
Floating is never risk-free even in the most stable of times; the risks of floating in the current mortgage rate environment, even with the improvements, is still elevated.
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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