July 8, 2020

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Articles Tagged With: Interest Rate Trends

Mortgage Rate Trends

Home Loan Interest Rates Hit Historic Lows Again.

The end of the month of June, 2020 saw mortgage loan interest rates hit another historic low–rates hit another all-time low for the fourth time in a single month. As coronavirus issues continue to affect the global economy, economic factors at home and abroad have contributed to an environment favorable for lower rates. FHA Mortgage Loan Interest Rates In June 2020 FHA mortgage rates were listed at 2.50% on the last day of June. Not all borrowers are offered rates this low–your experience will vary depending on FICO scores and credit history. Finance and banking experts have been discussing the idea that as long as coronavirus has a role in what happens to the U.S. economy, we have the potential for continued low mortgage rates. Unfortunately, there is also volatility | more...

 
Mortgage Rate Trends

Mortgage Rates Hovering Near Historic Lows

Mortgage loan interest rates have been holding steady near all-time lows. FHA mortgage loans (on fixed-rate 30 year mortgages) were reported at a best-execution 2.50% on Monday June 23, 2020 and talk persists that these low numbers could be with us longer than expected unless there are market forces that run counter to the current downward trend. Some marketwatchers point out that current low rates can be blamed at least in part on coronavirus concerns, but the reverse is not necessarily true if the crisis begins to abate without a feared second wave of infections. Investors and markets may not react in equal measure to the good economic news as they did to bad economic developments. What’s bad for the economy is often good for mortgage loan rates, and that’s | more...

 
Preparing For An FHA Mortgage? What You Need To Know About "Contingent Liabilities"

Fed Announces Bond Policy Influencing Mortgage Loan Interest Rates

In the second week of June, the Fed announced important policies that influence mortgage rates. FederalReserve.gov published a statement announcing monetary policy from the Federal Open Market Committee including: The Board of Governors of the Federal Reserve System voted unanimously to maintain the interest rate paid on required and excess reserve balances at 0.10 percent, effective June 11, 2020. As part of its policy decision, the Federal Open Market Committee voted to authorize and direct the Open Market Desk at the Federal Reserve Bank of New York to run “open market operations as necessary to maintain the federal funds rate in a target range of 0 to 1/4 percent”; The vote also authorized an “Increase the System Open Market Account holdings of Treasury securities, agency mortgage-backed securities (MBS), and agency | more...

 
Why FHA interest rates are lower than conventional mortgage rates

Why FHA Loan Interest Rates Are Lower

Have you ever started to research home loans and found yourself getting confused at all the data presented to you? What is the difference between a 30-year fixed rate conventional home loan and a 30-year fixed rate FHA mortgage? How do you know which loan to choose? Buying a home is one of the biggest commitments you can make financially as an ordinary, non-business borrower. The down payment alone makes some borrowers worry they can’t afford the loan (fortunately there may be local down payment assistance programs in your area that can help) or that they won’t be able to understand the intricacies of a mortgage. But buying a home involves a lot more common sense than you might realize. One area this is true for is interest rates–once you | more...

 
Mortgage Rate Trends

Mortgage Rate Trends: Historic Lows In Early March

There are times when mortgage rates are low due to any number of factors. And then there are situations where rates fall so low that even people in the mortgage industry start reviewing their refinance options. Now is one of those times with mortgage rates for FHA and VA loans falling below the three percent threshold into the high two percent range. FHA loan and refinance loan rates, at these numbers, promise a more affordable home loan and they provide the most benefit for those who plan to keep their home for a long time and pay a significant portion of the mortgage (if not the whole thing). Those who want to buy and sell quickly won’t reap the same long-term financial benefits as those who buy and keep the | more...

 
Mortgage Rate Trends

Mortgage Rate Trends: Eight Year Lows

With mortgage loan interest rates at eight-year lows, coronavirus fears, and a lot of market watching in the second month of 2020, it seemed like a good idea to resume a feature we had posted here for a good long while; a regular look at mortgage loan interest rate trends. And those trends are well worth watching at the moment; FHA and VA mortgage loan rates are advertised (at the time of this writing) at a best-execution 3.0%. You read that correctly, some FHA lenders are reporting mortgage loan rates at a flat three percent. That requires some caveats; not all lenders offer that rate, not all borrowers qualify for that rate, and not all lenders adjust their mortgage loan interest rates in the same way, the same amount, or | more...

 
FHA Loan Interest Rates: How Low Can They Go?

FHA Loan Interest Rates: How Low Can They Go?

In the first eight weeks of 2020 we have seen home loan interest rates plunge to eight-year lows. Mortgage rates for FHA home loans have sunk to 3.25%, due in part to the latest developments in the coronavirus which saw investors putting more money into safe-haven investments. That’s behavior that affects mortgage loan interest rates. The headlines themselves have no effect but investor reaction to those headlines makes quite a bit of difference. And many are inspired to look at their purchase loan or refinance loan options when the rates are advertised as low as 3.25%. When you read financial websites, you’ll find plenty of disclaimers associated with how the latest interest rates are displayed. Some consumers want to know what the phrases “top tier scenarios” and/or “best execution” have | more...

 
Why FHA interest rates are lower than conventional mortgage rates

Corona Virus Headlines And FHA Mortgage Rates

The headlines recently have said it all; “Coronavirus fears cause mortgage rates to plunge to 8-year low”. That’s courtesy of CNBC, not one of the many many amateur finance blogs or fly-by-night junk stock purveyors. What’s the reality behind the headline? FHA and VA home loan rates for Monday, February 25 2020 were reported at 3.25%, which is definitely one of the lowest points the rates have fallen to in the last several years.  There is speculation that rates might broach new territory where historic lows are concerned; whether this actually happens or not remains to be seen. Why do interest rates move higher and lower? There is no single factor, just as there is no single factor that goes into a home loan transaction; it’s a complex operation featuring | more...

 
Mortgage Loan Interest Rates: What You Need To Know About Trends

Mortgage Loan Interest Rates: What You Need To Know About Trends

What should borrowers know about mortgage loan interest rate trends? Especially when those trends are pushing rates toward historic lows? It’s a very good idea to be aware of the forces that affect mortgage rates; understanding how they work is a step toward making a more informed purchase as a house hunter or first-time home buyer. Interest Rate Trends Are Affected By The Economy What is good for the economy is often bad for mortgage loan interest rates, and vice versa. You will see rates pushing higher when there is good economic news, and rates trend lower when there is bad economic news. Except when they don’t. The thing to remember about mortgage loan rates is that no single factor affects them; it’s a combination of things and sometimes interest | more...

 
Will FHA Mortgage Loan Interest Rates Drop Even More?

Will FHA Mortgage Loan Interest Rates Drop Even More?

Mortgage loan rates have been reported at historic lows in recent times and many are wondering if now is the right time to buy or refinance a home, or if it’s better to wait to see if rates sink even lower. Should you wait to refinance? Is it better to hold off on buying? There is no good answer to these questions for one reason-all home loan transactions are different, not all get offered the same interest rates, and your experience may vary. First-time home buyers should know that when you are looking for a new home to purchase with an FHA mortgage, the interest rates you see today may not be the same tomorrow, or the next day. If you are house hunting and have not found a home | more...