October 14, 2016
After ten days of no improvement, upward pressure on interest rates finally broke on Thursday, but some market watchers are not ready to declare that day’s respite from higher numbers a decisive victory. In fact, some say this could be a resting moment before rates continue to push upward.
Some industry professionals are using the word “lock” quite a bit in public statements aimed at those who haven’t yet made an interest rate lock commitment with their lenders and are within a month to two months of closing.
It’s hard to argue with their logic, and rates have been low for quite some time. Is the current trend just a short term development or do we have a new range of rates to look forward to in the coming months?
It’s impossible to speculate, since breaking news, scheduled economic data releases, and Fed activity all can play a significant role in mortgage loan interest rates.
Not because these things are all actually linked together in some cases, but rather how investors react to them; investor behavior can and does influence rates in the markets that directly affect them (and at times the ones that indirectly affect them, too).
On Thursday, the day closed with 30-year fixed rate conventional mortgages at best execution interest rates at or near a range between 3.5. and 3.625%. If the upward movement persists, we’ll likely watch that best execution range disappear in favor of a new one with 3.625% at the bottom end. That’s assuming the changes resemble the ones that have come thus far; more dramatic shifts in rates could bring a new, higher single-number best execution rate.
FHA mortgage loan interest rates remain, for now, at the 3.25% comfort zone (best execution) they’ve been in for some time, but it might not take much longer for this to break out into a range itself with 3.25% at the bottom end. FHA rates tend to vary more among participating lenders so you may have to shop around to find the most competitive best execution rate near this number.
Best execution rates (those listed here) are not available to all borrowers or from all lenders. Your ability to access rates like the ones mentioned here depends greatly on your financial qualifications. FICO scores, credit history, and other factors play a big part in the interest rates quoted to you by a particular lender. Your experience may vary.
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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