Mortgage loan rates shot up to highs we haven’t seen in around a month–Tuesday rates pushed higher ahead of two important economic data releases on Wednesday that have potential to push mortgage loan rates in one direction or the other depending on investor reaction to the contents of those releases.
Wednesday morning sees the release of numbers from the first quarter Gross Domestic Product report (in the morning) and an announcement from the Fed (in the afternoon). The Fed event will be watched carefully as markets will react to any news that indicates whether or not the Fed intends to raise interest rates. That would have an effect, depending on how investors respond to the information, of pressuring rates higher or giving them a chance to recover from today’s move upward.
30-year fixed rates pushed higher on Tuesday, putting the best execution rate of 3.75% as the predominant best execution rate. That move comes after a few days of waffling back and forth, sometimes slightly higher, sometimes a bit lower, sometimes sideways. FHA mortgage loan rates are still in a comfort zone between 3.375% and 3.5% best execution, though FHA mortgage loan rates do tend to vary more among lenders than their 30-year fixed rate conventional counterparts.
(Remember, best-execution means a highly qualified borrower is assumed–your FICO scores and other financial qualifications will play a major role in determining your access to these rates. Your experience will vary.)
Tomorrow, Wednesday April 29 2015, is going to be a potentially big day for mortgage loan rates. Having two big economic events in the same day (and spaced apart for morning and afternoon) means we could potentially see some volatility–many industry professionals have advised locking rather than floating into tomorrow and that advice makes a lot of sense given the strong potential for market-moving announcements tomorrow.
Do you have questions about FHA home loans or refinance loans? Ask us in the comments section.