February 19, 2016
After three consecutive business days of rates edging higher (hitting 14-day highs at one point), Thursday and Friday saw them moving back down, recovering some of the losses earlier in the week. Some industry pros were anticipating a possible slight move higher today due to bond market activity, but at the end of the trading day that did not pan out.
That puts 30-year fixed rate conventional mortgage rates at a best execution 3.625% (depending on the lender), with FHA mortgage rates remaining in a range between 3.25% and 3.5% best execution. FHA rates will vary among participating lenders so your experience may vary.
Also, best execution rates as seen here aren’t available to all borrowers or from all lenders. Your FICO score and other financial qualifications play a large role in determining your access to best execution rates. In some cases the availability of a participating lender offering these rates may also be a factor.
Advice about locking and floating–committing to a mortgage rate lock with the lender or holding off on that agreement in hopes that an even better rate might become available in the short term–was mixed. Some were advising borrowers to consider the risks of floating through the weekend, while others were a bit more specific, saying anyone due to close in 30 days or less should likely lock with everyone else advised to also consider the risks and contemplate floating.
Floating, even in the best of times, is never without risk. At any moment new developments in financial markets at home or overseas can put upward pressure on mortgage loan rates. Breaking news, investor reaction to it, and other factors (up to and including natural disasters depending on the timing and location) can push rates higher OR lower.
It’s best to make the most informed choice you can. Ask some advice of your lender before “taking the plunge”. Those who choose to float should pay attention to headlines and financial indications over the weekend to get an idea of where things might be headed come Monday.
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: