Since our last report, mortgage rates have moved higher once more, but overall the best execution numbers are roughly about in the same range as mentioned in our last report. There are a variety of reasons for Wednesdays upward turn for rates.
One factor is overseas economic news related to the OPEC deal, which in and of itself might serve to put some upward pressure on rates depending on investor reaction to those developments. However, the OPEC situation combined with domestic inflation fears related to the incoming President and his administration serves to dump more fuel on the fire.
These two factors are cited by many industry pros as reasons why the current rate environment is what it is, and why its riskier to float or delay making a mortgage rate lock commitment with your lender (especially if you are within 60 days or less of your closing date).
At the time of this writing, 30-year fixed rate conventional mortgage loans were reported at a best execution range between 4.0% in some cases and up to 4.25%. FHA mortgage rates are in a best execution range between 3.75% and 4.0%. In some cases borrowers may notice the change in mortgage rates reflected in closing costs rather than an actual change in the rates themselves.
The rates you see here are listed as best execution rates, which assume an ideal borrower with outstanding FICO scores and loan repayment history. Your experience may vary depending on a variety of factors including your financial qualifications and the lender. These rates are not available from all lenders or to all borrowers.
We’ll be paying some extra attention to rates in the coming days until the current trends begin to level out. For now, the ups and downs are enough to justify some added column inches here, so we’ll be watching the trends as we approach the end of the year and move into the rate environment that will affect home loans in 2017.