April 18, 2019

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Articles Tagged With: Interest Rate Trends

FHA Home Loan Questions And Answers For First-Time Borrowers

Why Isn’t The Mortgage Loan Interest Rate I See On The Internet The Same Offered To Me?

Why do house hunters find FHA home loan interest rates advertised online to be different than the interest rates offered to them by a lender? Many borrowers want to know what the difference in rates will be and why. The answer is that several variables combine when your lender is reviewing your application for a new mortgage. Your interest rate will be offered based in part on those variables. What are some of these variables? FHA Home Loan Interest Rates And Daily Market Conditions FHA home loan interest rates are affected daily by investor behavior, breaking financial news, politics, even natural disasters and holidays. The daily changes in mortgage rates may or may not be passed on to the consumer in the form of an actual higher or lower rate; | more...

 
Will I Be Approved For An FHA Mortgage Loan?

What You Should Know About FHA Mortgage Loan Rate Lock Agreements

What should FHA home loan applicants know about the practice of mortgage interest rate lock commitments? This is an important detail of your home loan and it’s best to know how the interest rate lock agreement works ahead of time so you know how and why this part of the mortgage loan process works. What Is An FHA Mortgage Loan Interest Rate Lock Agreement? An interest rate lock protects a borrower from the daily mortgage rate fluctuations that happen naturally due to investor behavior, or other market forces that can change rates. An interest rate lock commitment is not automatic; it must be formally agreed to in writing between the borrower and the lender. An interest rate lock commitment does exactly what it sounds like it does-the lender and borrower | more...

 
FHA Mortgage Loans: Do Interest Rates Matter?

FHA Mortgage Loans: Do Interest Rates Matter?

If you are a first time home buyer you might wonder whether FHA home loan interest rates quoted to you at the appropriate time actually matter-after all, aren’t these rates subject to change depending on market forces and isn’t the borrower basically being offered the “going rate” no matter what? The short answer is, interest rates DO matter and the rates you are offered are not necessarily the “going rate”, whatever that may be. Why? There are a few variables that affect the mortgage loan interest rate you are offered by the lender. Market forces are one of those variables. Depending on breaking news, market activity, and even overseas financial developments, the rates offered at any given time may be different than the last time you checked the rates. Another | more...

 
FHA Refinance Loans For Non-FHA Mortgages

What Are The Interest Rates On FHA Mortgage Loans?

What are the interest rates on FHA mortgage loans? This is a question that can be tough to answer because there are variables involved. Some of those variables are with the lender, but some are associated with the borrower. FHA Interest Rates Are Not Set By The FHA One very important aspect of FHA loans to be mindful of; the FHA and HUD do not set or regulate the interest rates on FHA mortgage loans, refinance loans, or loan assumptions. Interest rates will be negotiated between the lender and the borrower. FHA Mortgage Loan Interest Rates Are Not The Same For All Borrowers FHA loan interest rates, like other mortgage loan rates, are determined in part by market forces, but also by the borrower’s financial qualifications. The greater credit risk | more...

 
Mortgage Loan Rate Trends

FHA Mortgage Rates: Trending Slightly Higher After Recent Lows

Since our last report, we’ve seen mortgage rate trends push rates to lows we haven’t seen since the Christmas holiday season but the start of the new week has seen those rates creep slightly higher. Even with the minor upward movement, gone are the previously reported ranges of rates, replaced by single-digit best execution numbers some industry pros are urging borrowers to take full advantage of in situations where locking/floating is being considered. 30-year fixed rate conventional mortgages are reported, at the time of this writing, at the very bottom of the four percent range best execution. That means an extremely well-qualified conventional borrower could find rates as low as 4.0%. FHA mortgage loan rates are still below the four percent threshold, coming in at a best execution 3.75%. Best | more...

 
Mortgage Loan Rate Trends

Mortgage Rate Trends: Moving Higher

Since our last report, mortgage rate numbers went from an incursion into sub-four percent territory for the most competitive lenders back up to highs we haven’t seen in approximately two weeks. Domestic tax policy, overseas election drama, and other factors have played a part in the recent ups and downs, but what we’re seeing is short-term influences rather than indications of a possible long-term trend. At the moment it’s tough to say what the mid-to-long term direction of rates might be. We’re in an uncertain period and much of our reporting lately on mortgage rate movement has to do with these short term issues. At the time of this writing, 30-year fixed rate conventional mortgages are back to a range between the very bottom of the four percent range and | more...

 
Mortgage Loan Rate Trends

Mortgage Loan Interest Rate Trends: Higher

Since our last report, we’ve seen rates climbing again, but the most recent uptick in numbers has a lot to do with global political headlines rather than domestic economic issues or market corrections. The election results in France have certain implications-one candidate favors a French version of Brexit and investors watching the results unfold have reacted in ways unfavorable to mortgage loan interest rates. At the time of this writing, we’re seeing upward movement in rates; 30-year fixed rate conventional mortgages are in a best execution range between 4.0 and 4.125%-remember last week we reported some aggressive lenders were offering best execution rates below the four percent line for the first time in a long while. FHA mortgage loan rates are reported at the time of this writing in a | more...

 
Mortgage Loan Rate Trends

Mortgage Rate Trends: Lower

Mortgage rate trends have generally been moving in favor or lower rates over the short term, and since our last report we’ve seen those rates move into territory not firmly held for quite some time. What is good for the economy is often bad for mortgage rates, and vice-versa, so the uncertain news you see related to some economic issues at home can be viewed as a contributing factor for lower rate activity in recent days. What we’re seeing as of late includes the influence of global economic headlines, domestic questions about the value of the U.S. dollar following statements out of Washington, and stock market activity. All this contributing toward the downward trend in mortgage rates. Investors hate uncertainty, and often run to the safety of bonds when times | more...

 
Mortgage Loan Rate Trends

Mortgage Loan Interest Rate Trends: New Lows

In our last report, we noted that mortgage loan interest rates had been on the move, losing a small amount of ground over the previous two business days. We also noted that it was too early to tell if that was becoming a trend, or if the move higher was a short-term fluctuation. At the time of this writing, mortgage rates have since plunged to lows we haven’t seen for a majority of the year. There are complex reasons why rates have suddenly moved downward. Global political headlines often play a role in the direction of mortgage rate movement, especially when those headlines have far-reaching implications. This week we’ve seen French elections, Russia and North Korea dominate headlines in ways that have investors moving their cash into safer bets, which | more...

 
Mortgage Loan Rate Trends

Mortgage Loan Interest Rate Trends: Sharply Lower

Since our last report, mortgage loan interest rates have fallen sharply. Market watchers give at least some of the credit for this to bond market activity, and following a recent persistent upward trend any improvement is a welcome step in the right direction. From Wednesday on, there are a variety of scheduled economic data releases and other events that could (and historically, have) be influential in the continued downward trend. Of course, these scheduled events could also have the opposite effect on mortgage loan rates, so industry professionals will likely be paying individual attention to each of these until week’s end. 30-year fixed rate conventional mortgage loan interest rates were reported at a best execution 4.125%, down from last week’s 4.25%. The big changes are in FHA mortgage loan rates | more...