Articles Tagged With: FHA Loan Rates

February 13, 2017

Mortgage Rate Trends: Higher

Mortgage loan interest rates went higher on Friday, undoing some of the gains made earlier in the week but keeping things within the range we’ve been looking at since the start of 2017. The move higher wasn’t enough to push many lenders away from their earlier offerings; affected borrowers likely saw the results of Friday’s move reflected in closing costs in some markets, where actual changes to the rate may have occurred with some lenders. 30-year fixed rate conventional mortgages were reported in a range between 4.125% and 4.25% on Friday (best execution). FHA mortgage rates remain in their 3.75% comfort zone. The ups and downs, give-and-take activity of recent weeks isn’t really enough to push FHA mortgage rates out of that zone without either a day’s worth of dramatic | more...

February 6, 2017

Mortgage Rate Trends: Higher, Lower

By Joe Wallace

Last week, mortgage rate numbers basically see-sawed within the range we’ve been looking at ever since the new year began. Mortgage rates began last week lower, but moved up and down from Wednesday on due to a variety of economic data releases and investor reaction to them. The Fed also made a statement last week that negatively affected rates. The causes of the ups and downs are not directly tied to rate performance, but investor reaction to the economic developments and data of last week does affect rates. Overall, we’re seeing about the same rates at the time of this writing as we reported last week, more or less, but changes in closing costs will be apparent to borrowers affected by those changes. At the time of this writing, 30-year | more...

January 24, 2017

Mortgage Rate Trends: Sharply Improved

By Joe Wallace

You may have noticed some extra coverage of mortgage rate trends in the last few weeks; rates have moved up and down in ways that seem to insist on added coverage, and Monday’s mortgage rate activity was definitely that. Rates recovered ground lost in the previous week and part of the reasons for that are also the reasons we saw higher rates in our last report; there is still a great deal of uncertainty among the markets and investors when it comes to economic policy, how the new administration will deal with overseas trade and other important issues. Mortgage rate trends currently reflect this uncertainty. Investors reacted to the earliest activity from the new regime in Washington D.C. and those reactions helped push mortgage rates lower. We’re now seeing a | more...

January 23, 2017

FHA Announces Suspension Of Earlier Policy Changes

By Joe Wallace

Earlier in January 2017, we reported on changes in policy regarding FHA Mortgage Insurance Premiums. Mortgagee Letter 2017-01 announced revised, lower Mortgage Insurance Premiums, plus the elimination of the distinction in rates based on the base loan amount according to the mortgagee letter. However, a new mortgagee letter announces that this change has been suspended. “This Mortgagee Letter…communicates that Mortgagee Letter 2017-01, reducing Mortgage Insurance Premiums for loans with Closing/Disbursement date on or after January 27, 2017, has been suspended indefinitely. FHA will issue a subsequent Mortgagee Letter at a later date should this policy change.” It is unclear at the time of this writing whether the suspended policy will be revised, or eliminated completely, but we will report on any future developments. Borrowers with FHA loans that have closing/disbursement | more...

January 23, 2017

Mortgage Loan Interest Rate Trends: Higher

By Joe Wallace

Mortgage loan interest rate trends have been up and down within a certain range in the new year, but uncertainty over the new administration in Washington D.C. has investors skittish. Since our last report we’ve seen mortgage loan rates push higher, with some lenders hitting 4.375% territory (best execution). For 30-year fixed rate conventional mortgages, our sources say that means that at the time of this writing, there’s a best execution range that starts at or near 4.125% (a smaller number of lenders offering this) and ending with Friday’s at-or-near 4.375% for other lenders. FHA mortgage rates are at the time of this writing still holding at a best execution 3.75%, but that’s likely to change soon if the upward trend remains. As always, the rates you see listed here | more...

January 10, 2017

Mortgage Rate Trends: Moving Lower

By Joe Wallace

Though the borrowers affected by Monday’s move lower may find the resulting improvements reflected in closing costs rather than in actual mortgage rate changes (depending on the lender), the start of the week did find rates moving low enough to erase the upward movement from the end of last week. Market watchers have stated that we’re entering a phase where there are hopes of an overall downward trend, but it’s too early to call it as such. What we seem to have at the moment is a pushback against the higher movement that began post-election, but whether that’s a short-term bump in the road or not can’t be determined…yet. On Monday, 30-year fixed rate conventional mortgages moved more decisively into a best-execution 4.125%, which basically means that more lenders are | more...

January 9, 2017

Mortgage Rate Trends: Lower Overall

By Joe Wallace

Since our last report we’ve seen a mortgage rate recovery of sorts, but it is still too early to label it on overall short-term downward trend. Last week rates moved lower in short-term ways that give some market watchers reason to use the term “correction” in their reports, but Friday’s Employment Situation Report did cause a bit of an upward turn for mortgage loan interest rates. The key to Friday’s move is that the changes weren’t terribly surprising to those paying close attention, and even with a modest readjustment, we’re still looking at numbers we haven’t really since since the election, as you’ll see below. 30-year fixed rate conventional mortgages moved as low as a best-execution 4.125%, but 4.25% is also available from some lenders, so we have a best | more...

January 3, 2017

FHA Mortgages: Loan Basics For 2017

By Joe Wallace

For those who are weighing their real estate options in 2017, an FHA home loan can be an important option. Compare the down payment and interest rates on FHA mortgages with their conventional counterparts and it’s easy to see why many borrowers opt for an FHA mortgage. FHA loans, like most mortgage loan programs (with the exception of VA home loans, which are in general available only to qualifying military members), require a down payment which is usually 3.5% of the adjusted value of the property. Your down payment is required above and beyond other closing costs, mortgage insurance, etc. and must come from approved sources such as savings/checking accounts, the proceeds from cashed-in investments, cash saved at home, etc. Your down payment cannot come from payday loans, credit card | more...

January 3, 2017

Mortgage Rate Trends: Closing Out 2016 Lower

By Joe Wallace

Mortgage rate activity in the last days of 2016 might have, to some, started to look like a recovery trend, but it’s not safe to declare that just yet in spite of some overall downward movement at the very end of last year. The new year has plenty of early potential for volatility depending on a variety of factors, not the least of which involve a new White House administration. Last week rates closed on the final trading day of the year (for America) with rates moving low enough to push 30-year fixed rate conventional mortgages into a best execution range with 4.125% at the bottom and 4.375% at the upper end. That’s as close as rates got to breaking through the 4.0 zone and into the high three percent | more...

December 19, 2016

Mortgage Rate Trends: Approaching Mid Four Percent Range

By Joe Wallace

Since our last report on mortgage rate trends, we’ve seen the upward trend continue into highs not seen for quite some time. Market watchers note that some seasonal market trends that affect rates are at work here, but those forces are not the only ones with the power to alter mortgage rates (based on investor reaction to things like breaking economic or political news, etc.) 30-year fixed rate conventional mortgage rates have, best execution, moved into a range of rates that are at or near the mid four percent zone. At the time of this writing, don’t be surprised to find best execution conventional rates ranging between 4.25% and 4.625%. The upper and lower ends of this range are more rare, but according to our sources certain lenders may offer | more...