November 4, 2015
Last week, mortgage rates moved higher on Thursday, then leveled out and didn’t lose any more ground on Friday. But Monday and Tuesday we’ve seen the rates move to their highest numbers in four weeks or so, pushing best execution rates for 30-year fixed rate conventional mortgages farther away from that 3.75% zone we saw last month.
30-year fixed rate conventional mortgages have moved recently into a range between 3.875% and 4.0%; if upward pressure continues we could see 4.0% (best execution) become far more prevalent.
At the time of this writing, FHA mortgage rates are still at their 3.5% best execution comfort zone but this time around that might not last as long as the previous FHA mortgage loan rate comfort zone–we’re likely to see rates break out into a range depending on how consistent the upward movement is for the rest of the week.
Volatility is definitely something to beware of–Wednesday there are some speeches from Fed members that could move markets depending on both the content of those speeches and investor reaction to them.
Friday there is a scheduled release of the Non-Farm Payroll report that also has potential to affect rates, so there’s a high degree of risk this week for those who choose to float rather than lock in a mortgage rate commitment with a lender.
Some industry professionals believe–and have stated–that rising rates aren’t as much of a question as when and where they will stop. “Lock” is the advice you’ll most likely get from people with this opinion, and even in the best of times, floating is not risk-free. Make the most informed choice you can and choose wisely this week–there is plenty of volatility to go around.
Do you work in residential real estate? You should know about the free tool offered by FHA.com. It is designed especially for real estate websites; a widget that displays FHA loan limits for the counties serviced by those sites.
It is simple 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:
http://www.fha.com/fha_loan_limits_widget
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.
Browse by Date: