April 11, 2017
Since our last report, mortgage loan interest rates have risen slightly but overall remain within the same range as we’ve been reporting on now for several weeks. Both Friday and Monday saw rates moving higher in spite of conditions that have in the past contributed to helping rates move lower.
This is not unusual, but it happens infrequently enough to raise eyebrows among those who aren’t used to watching these ups and downs.
The contrarian moves in rates as of late gives market watchers reason to be lukewarm on “floating” or holding off on a mortgage loan interest rate lock with a lender in hopes that rates may go lower before the lock agreement is finally made.
The moves higher aren’t enough to create the impression that we’re headed into a new upward trend. Nor have they corrected to give hope to those tempted to float.
Among some, the advice is that there’s no real benefit to floating in the very short term. It is too early to try to divine a trend based on a couple of business days’ worth of slightly higher mortgage loan interest rates-changes subtle enough that they could simply be reflected in the closing costs of a particular transaction with a particular lender rather than an actual higher rate.
At the time of this writing, 30-year fixed rate conventional mortgages are reported at a best-execution 4.125%. Our sources report that some more aggressive lenders may be leaning closer to the bottom of the four percent range, while others may be offering best execution rates above 4.25%.
FHA mortgage loan rates are still within a range that, at the bottom end (best execution) below four percent and the upper end at 4.0%.
FHA mortgage rates tend to vary more among participating lenders, so you may have to shop around to find the most competitive, sub-four percent zone rates.
As always, the numbers reported here are “best execution” rates which assume ideal conditions. Your FICO scores, and other financial qualifications will play an important part in determining your access to rates like these. Best execution rates seen here are not available to all borrowers or from all lenders. 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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