March 26, 2015
Our last look at mortgage loan interest rate trends saw rates making an impressive comeback after some upwards momentum that pushed 30-year fixed rate conventional mortgages up into territory close to the four percent range earlier in the month. That improvement trend has been fairly consistent until yesterday, March 25, 2015, when rates took a big single-day move higher.
For about a dozen days now rates have been on the downward trajectory, but yesterday’s move puts 30-year fixed rate conventional mortgages at a best-execution rate of 3.75% depending on the lender.
Best execution rates are not available to all borrowers or from all lenders–your FICO scores, loan repayment history and other financial qualifications will play a large role in determining your access to mortgage loan rates.
When it comes to FHA loans, the best execution rate has moved into a range between 3.25% and 3.5%, depending on the lender. You’ll noticed more variation in FHA mortgage rates among lenders, which is why it’s a good idea to shop around for a lender who offers the most competitive rates and terms based on your financial qualifications.
Some industry professionals and market watchers feel that after sustained improvement in mortgage loan rates over the last dozen days, we were bound for some pushback–could yesterday’s move higher be the start of a trend? Or a one-day hiccup in an overall downward momentum that has a bit more life in it?
Only time will tell, but there seems to be a consensus among some that locking a mortgage loan rate now instead of “floating” in hopes of a better rate might be the smart move for now.
Do you have questions about FHA loans? Ask us in the comments section.
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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