November 2, 2015
Thursday and Friday say mortgage rate moving higher, pushing close to four-week highs and some industry professionals and market watchers are sounding off about the higher rates potentially shifting into an upward momentum phase.
Whether or not rates actually do that is dependent on a variety of factors that haven’t actually happened yet, so it’s unclear where rates could move during the week.
Friday, 30-year fixed rate conventional mortgages moved into a best execution range between 3.875% and 4.0% depending on the lender. Some extremely well qualified borrowers who found lenders willing to offer lower rates may still have had access to something approaching 3.75% on Friday, but if upward pressure continues, it’s likely that best execution offering will disappear for the moment.
FHA mortgage rates are still holding in a best execution comfort zone of 3.5% (FHA rates tend to vary more among participating lenders, your experience will vary) but if the upward trend persists, we’ll most likely see FHA interest rates break out into a range with 3.5% at the low end.
A more dramatic shift in rates could always prevent that, but in the past the range of rates is behavior we’ve seen.
Keep in mind that best execution rates assume ideal conditions including outstanding FICO scores and other financial qualifications. Your access to these rates depends on your FICO and other application data, plus the availability of a participating lender willing to offer those rates. Best execution rates are nor available to all borrowers or from all lenders.
Do you work in residential real estate? You should know about the free tool offered by FHA.com. Designed especially for real estate websites, this is a widget that displays FHA loan limits for the counties serviced by those websites. It is very easy 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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