August 11, 2015
In our last report we mentioned that Friday saw a rally for mortgage rates; the following Monday, August 10, served to wipe out those gains. In spite of that move higher, many lenders are offering best execution rates for 30-year fixed rate conventional mortgages (at the time of this writing) between 3.875% and 4.0%.
We’ve had many days of improvement with minor adjustments here and there and a variety of sources report the rate activity we’re currently seeing could be deemed fairly typical. Overseas headlines about the Greek debt crisis have lost their influence on rate activity at home, it seems, but the China stock market woes could easily become an influence again if breaking news that influences investor behavior occurs.
FHA mortgage loan interest rates are holding steady in the current comfort zone of 3.75% best execution. FHA rates may vary more among participating lenders then their conventional counterparts, so it pays to shop around for the best rate. Remember, the numbers we discuss here are “best execution” rates which assume ideal conditions including outstanding FICO scores and loan repayment history.
The going advice on whether to lock or float is slightly mixed. Some advise locking but add a caveat that floating, while risky, may be attractive for borrowers with higher “risk tolerance” should rates go higher. Those who choose to float may wish to stay in touch with the lender regularly to assess the situation. Floating is never without risk–assess your ability to withstand a move higher and choose your path from there.
Some industry professionals have stated that Thursday could be an important day for rates after a scheduled economic data release–the Retail Sales report is due out then, and we could see investors react depending on the contents of that report. It’s best to pay attention to such anticipated data releases as they can and often do change the playing field in the short term where mortgage loan interest rates are concerned.
Do you have questions about FHA home loans? Ask us in the comments section.
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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