June 13, 2015
We’ve been posting more about home loan interest rate trends as of late–rates have been moving higher in the last few weeks to what some industry professionals term 2015 highs. Next week we are due for an important, and highly anticipated announcement from the Federal Open Market Committee (FOMC) which has the power to influence mortgage loan rates depending on investor reaction to it.
The big debate among some market watchers going into next week is whether or not the FOMC announcement WILL affect rates, or if European economic news will overshadow it.
We’ve seen behavior like this before–a major, market moving event being overlooked in favor of breaking news from elsewhere. So it’s not entirely clear which way rates could move next week, except that it is reasonable to expect rates to hold more or less where they are now due to being in a “defensive” position ahead of the FOMC.
That, of course, is subject to change also depending on other events, breaking news, etc. Ahead of next week, rates remained more or less where they were yesterday depending on the lender. 30-year fixed rate conventional mortgages are still in their previously reported best execution range between 4.125% and 4.25%, but you may find that the upper end of that range is more prevalent.
FHA mortgage loan interest rates are still in their best execution comfort zone of 3.75%. Best execution rates are offered to those with outstanding FICO scores and other financial qualifications–your credit report will play a large role in determining access to these rates. Your experience may vary depending on the lender and other factors.
Pay close attention to European economic news next week ahead of the FOMC announcement as that is likely to play an important role in how rates might move before, during, and after the announcement. The FOMC meets Tuesday and Wednesday of next week.
Do you have questions about FHA loans? Ask us in the comments section.
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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