September 22, 2015
You might have noticed more of these types of posts recently–we’ve expanded our coverage of FHA mortgage loan interest rate trends because of the attention to last Thursday’s Fed announcements on the future of interest rates and the potential for volatility in the markets that directly affect those rates as a result.
Things seem to be settling back down to normal and our coverage on mortgage loan rate trends will do likewise, but Monday was significant because it was the first day rates moved higher following the Fed’s Thursday announcement that no rate hike was coming, at least for now.
30-year fixed rate conventional mortgage loan interest rates are still in a range between 3.875% and 4.0% best execution at the time of this writing. It was hoped that another day of recovery might have pushed rates closer to the 3.75% mark, where FHA mortgage loan rates (best execution) are at now. That move could have also brought FHA rates below 3.75% in a day or two depending on conditions.
But for now, we’re looking at the same old FHA best execution comfort zone. Some borrowers may have noticed Monday’s upward movement of rates in closing costs while others may, depending on circumstances, found actual higher rates.
Remember, best execution assumes ideal conditions such as a borrower’s high FICO score and outstanding loan repayment history. Your experience may vary–the rates mentioned here are not available to all borrowers or from all lenders.
Industry professionals are mixed in their advice about floating and locking in the short term–it may be best to have a conversation with your lender to see which way he or she thinks the winds might be blowing over the short term.
Do you work in residential real estate? You should know about the free tool offered by FHA.com. It was designed especially for real estate websites–a widget that displays FHA loan limits for the counties serviced by those websites.
It’s simple to spend a few seconds customizing the state, counties, and widget size for the tool; you can copy the code and paste it into your website with ease. Get yours today: http://www.fha.com/fha_loan_limits_widget
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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