April 3, 2017
The most current mortgage rate trends put us in a curious place at the moment-there are small changes, there is movement in rates, but our sources say much depends on the lender (both conventional and non-conventional) and how that particular financial institution is reacting to the current rate environment.
As we’ll explore in a moment, FHA mortgage rates are in a range that is fairly atypical, at least in terms of the size of that range. Conventional rates are solidly in the bottom four percent zone, but there are factors this week that have the potential to influence that.
Specifically, there are scheduled economic data releases this week including today’s (Monday) morning release of construction spending an a national manufacturing index. There’s a scheduled ADP employment report due out mid-week, and Friday will close things out with non-farm payrolls and unemployment reports. Investor reaction to any or all of these can vary, and rates can be affected depending on how investors react.
At the time of this writing, 30-year fixed rate conventional mortgages are reported at a best execution 4.25%, which is how they ended up at the end of the day on Friday. FHA mortgage rate numbers are in a range from 3.75% to 4.25%. These best execution rates will vary from lender to lender, so it pays to look for the best rates and terms.
As always, the numbers listed here are reported as “best execution” rates which assume ideal conditions including outstanding credit history, FICO scores, and other financial qualifications. The rates listed here are not available from all lenders or to all borrowers. Your experience may vary based on a variety of factors including the ones mentioned above.
Looking ahead, some industry professionals believe that the previous upward trend might be interrupted for now, at least in the short term. However, it’s not clear which way things will go beyond Friday; there is still a measure of uncertainty based on questions about future economic policy developments. The market hates uncertainty, so this could be an important factor for weeks/months to come until there are fewer questions and more answers on important issues including overseas trade.
Trade, global economic data, and other factors do not directly affect mortgage rate numbers but investor reaction to these things can and historically have influenced rates. If you are not sure whether to lock in a mortgage rate commitment with your lender or float in hopes of taking advantage of lower rates in the short term, it is a good idea to have a discussion with your loan officer to see what advice she or he might have. Make the most informed decision you can.
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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