November 19, 2015
All eyes were on the Fed on Wednesday in anticipation of the release of Fed meeting minutes many hoped would give a bit more clarification to the possible December interest rate hike that’s been discussed. After the release of those minutes, mortgage rate behavior only changed a small amount, leaving best execution rates more or less where they have been in the last few days.
Is a rate hike coming in December? That has not been confirmed (the Fed is definitely pointing towards the possibility), but many sources believe that interest rates for mortgage loans probably won’t take any steep plunges before that issue is cleared up. We’re likely staring at a tight range of rates until that happens. Some feel there is still potential for rates to move lower than they are now, so the lock/float debate varies depending on who you ask.
With that in mind, 30-year fixed rate conventional mortgage loan interest rates are at or just above 4,0%, best execution. FHA mortgage loan rates are holding at 3.75% best execution. Best execution rates assume ideal conditions such as outstanding FICO scores and other financial qualifications. The rates mentioned here are not available from all lenders or to all borrowers. Your experience may vary.
Locking or floating now depends greatly on how near you are to closing time and what your “risk tolerance” is. Some are saying “lock within 30 days of closing”, while others believe that floating might be good for those who can afford the risk.
Locking or floating is the borrower’s choice, but in times like these it never hurts to get an expert opinion. Ask the advice of your loan officer and make the most informed decision you can.
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.
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