April 4, 2017
Since our last report, mortgage loan interest rates have fallen sharply. Market watchers give at least some of the credit for this to bond market activity, and following a recent persistent upward trend any improvement is a welcome step in the right direction.
From Wednesday on, there are a variety of scheduled economic data releases and other events that could (and historically, have) be influential in the continued downward trend. Of course, these scheduled events could also have the opposite effect on mortgage loan rates, so industry professionals will likely be paying individual attention to each of these until week’s end.
30-year fixed rate conventional mortgage loan interest rates were reported at a best execution 4.125%, down from last week’s 4.25%. The big changes are in FHA mortgage loan rates which are still being reported in a best-execution range of rates, but a smaller range than previously reported. FHA rates are, at the time of this writing, reported at between 3.75% and 4.0.
Previously the upper end of that range was at or near 4.25%.
Lock or float? For those who are not yet committed to a mortgage loan interest rate lock with their lender, this week doesn’t provide much stable ground. With the scheduled data releases and other events this week, we could easily see the gains reported today erased if investors react negatively to the news.
“React negatively” can mean pushing investment dollars into safer territory, which can and often does hurt mortgage rates in the short term. Floating, or waiting to make the rate lock commitment with your lender, is never free of risk. But volatility has been prevalent in 2017 and there’s no reason to assume that might not continue in the near term.
Some industry professionals are using the word “rally” to describe the recent lower turn in mortgage rates, but it might be too early to tell if that’s cautious optimism or not. The best advice is the type we always give here-when in doubt, have a conversation with your lender to see what perspective she or he can offer.
As always, the rates listed here are “best execution” rates, which assume ideal conditions. Your access to these rates, or rates similar to these depends on your credit history, FICO scores, and other financial qualifications. These rates 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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