Wednesday is potentially a big day for mortgage rates–there’s an FOMC announcement today that could influence mortgage loan rates depending on the contents of that announcement and investor reaction to it.
The Fed has been debating a hike in interest rates once the economy is deemed in the right position to accept the hike. Any talk of raising rates has in the earlier times put investors in a mood to react in ways that put upward pressure on mortgage rates.
That said, some feel there’s no rate hike coming–at least not today. According to a Marketwatch.com piece this morning by columnist Frank Gold, “Almost no one is looking for the Federal Open Market Committee (FOMC) to raise short-term interest rates when it ends its October meeting on Wednesday.And few expect the Federal Reserves rate-setting board to hike at its December meeting, either.”
The advice for borrowers looking to lock or float on mortgage loan interest rates has been mixed–some industry pros are urging borrowers to lock ahead of the Fed announcement, saying the potential for increased rates is high enough even though there’s no real expectation of a raised rates announcements. Sometimes volatility happens no matter what the Fed says, and breaking news or other events can also influence rates apart from such scheduled economic data releases.
Floating is never without a degree of risk, so borrowers should keep that in mind–always ask advice of your loan officer and make the most informed decision you can whether to lock or float.
30-year fixed rate conventional mortgages were reported yesterday at the rates we’ve been seeing–between 3.75% and 3.875% best execution, with FHA mortgage loan rates also holding at 3.5% best execution. The rates here are “best execution” and your FICO scores and loan repayment history (as well as other financial qualifications) will determine your access to these rates. These best execution rates are not available from all lenders or to all loan applicants–your experience may vary.
Do you work in residential real estate? You should know about the free tool offered by FHA.com. Its designed especially for real estate websites; a widget that displays FHA loan limits for the counties serviced by those websites.It is easy to spend a few seconds customizing the state, counties, and widget size for the tool; you can copy the code and paste it into your website with ease. Get yours today: