March 22, 2017
Mortgage rate trends continue to point to lower numbers post-Fed. Since our last report we’ve seen more downward momentum, thanks in no small part to some unfavorable stock market activity. Political and economic uncertainty often sends investors running for the security of safer investments and this week seems to have some classic examples of that happening.
Which means, looking back, that we’ve watched mortgage loan rate trends shift from the upward momentum that brought on rates that hit multi-year highs to the current environment that, while not multi-year lows, certainly is a welcome improvement.
The most recent moves lower may be reflected in closing costs rather than actual mortgage rates (depending on the lender) but if the trend persists we’re likely to see that change soon.
30-year fixed rate conventional mortgages are listed in a best execution range between 4.125% and 4.375%. Those with access to best execution rates (thanks to excellent financial qualifications) may find that more lenders offer something in the middle between the upper and lower end of the range, according to our sources.
FHA mortgage rates are still holding in what seems to be the new comfort zone between 4.0% and 4.25%. FHA rates often vary more among participating lenders than their conventional equivalents, so it’s a very good idea to compare lenders to see who offers the more competitive rates.
Locking and floating issues are still tricky-even though we seem to be in a short-term downward trend, industry professionals make a case for elevated risk with floating, or holding off on a mortgage rate lock with the lender in hopes that rates will continue to fall. Floating is never without a degree of risk even in the most borrower-friendly trends, so it’s good to remember that and discuss your mortgage rate options with your loan officer.
As always, the interest rates quoted here are listed as “best execution” rates, which assume ideal conditions such as an extremely well-qualified borrower with outstanding FICO scores and other financial qualifications. Your ability to access rates like the ones seen here depends greatly on your payment record, credit scores, and other financial factors. Your experience may vary.
You may notice some additional column space devoted to the most recent mortgage rate trends; as conditions warrant we will post about relevant moves higher or lower; the current rate environment could have major impact on borrowers who have closing dates coming up sooner rather than later and have not yet committed to a mortgage rate lock.
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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