January 25, 2016
After some good improvements last week, Friday came to undo some of that progress. Earlier in the week mortgage loan rates were solidly in the high three percent zone, but after Friday’s upward turn, we see four percent back in the picture.
30-year fixed rate conventional mortgage loan rates were in a range on Friday between 3.875% and 4.0%, best execution. FHA mortgage rates are still being reported, best execution, at 3.5% but if the upward trend continues this week we could see that number shift into a range of rates with 3.5% at the low end, or we could just see FHA mortgage loan interest rates shift back into the previously long-held 3.75% (best execution).
(As always, it’s important to remember that best execution rates are not available to all borrowers or from all lenders. Your access to the rates listed here depends on your financial qualifications such as FICO scores, loan repayment history, etc. The availability of a participating lender may also be a factor. Your experience may vary.)
There are a number of factors that could influence rates this week including a scheduled Fed meeting on Wednesday, which is also the day a new home sales report will be issued. A Gross Domestic Product report for the final quarter of 2015 is due out on Friday, which (depending on investor reaction to the data) could have an effect on rates.
The GDP is a measure of economic growth, and like so many other types of economic data, what is bad for the economy is often beneficial for mortgage rates. If the GDP report shows negative information it’s possible that rates could benefit.
Locking and floating advice was mixed on Friday–many wanted to see what happens come Monday, and for those who floated through the weekend, it’s true that there’s always a degree of risk. Some might gamble on the idea that Friday was something of a correction and that more gains could be had early in the week. But all that is speculative and borrowers should never assume that floating is “safe” as breaking news or other unexpected events can always change the rate environment.
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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