April 6, 2016
Mortgage loan interest rates moved lower on Tuesday, putting them in a position close to lows we haven’t seen in a very long time. Part of the reason for the move lower has to do with Fed statements about the state of possible interest rate hikes (very cautious about them at this time) and part of the reason has to do with anticipated economic growth numbers among other factors.
The move lower is, in the eyes of some market watchers, possibly a short term drop. With 30-year fixed rate conventional mortgage loan interest rates in a best execution range between 3.625% and 3.5% (among very competitive lenders), it’s definitely not a bad time to consider a mortgage rate lock. And for FHA borrowers who haven’t committed with the lender to a mortgage loan interest rate locks, today’s move lower definitely has some best-execution advantages.
FHA mortgage rates have been in a comfort zone between 3.25% and 3.5% for quite some time. But on Tuesday we saw that range end in favor of 3.25%, best execution. How long this rate persists remains to be seen-if this low is indeed a short term move, it’s quite possible we’ll see FHA rates go back to the range previously reported. But as always, these best execution rates can be affected by many factors including overseas economic developments, breaking news, and scheduled economic data releases.
Lock or float? Some industry professionals believe 3.25% is as low as rates could move for now when it comes to FHA mortgage rates. Some advise those within 30 days of closing to seriously consider locking, but if you choose to float, remember that floating is never risk-free. Ask some advice of your loan officer in the current rate environment before deciding to hold out for a lower rate move. Some are speculating the next rate move could be in the upward direction, but as always the variety of factors we’ve already mentioned will have a say in what happens next.
Remember, the rates you see listed here assume ideal conditions including outstanding FICO scores, loan repayment history, and other financial qualifications. The rates listed here are not available to all borrowers or from all lenders–your experience may vary.
Do you work in residential real estate? You should know about the free tool offered by FHA.com. It is designed especially for real estate websites; a widget that displays FHA loan limits for the counties serviced by those sites. It is 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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