April 1, 2015
Mortgage rates took a bounce last Wednesday and Thursday after sustained downward momentum; rates have since recovered and we’re seeing an improvement trend that some market watchers believe might be an indication that the much-anticipated Employment Situation Report due out on Friday of this week might not be as good as it could be. That could mean good things for mortgage rates in the short term.
30-year fixed rate conventional mortgage loan best execution rates are, at the time of this writing, reported in a range between 3.625% and 3.75% depending on the lender. That range of rates is an improvement over the previous day, where rates were at a single best execution rate of 3.75%.
Ditto for FHA mortgage loan rates, which had been at 3.5% best execution, and now are reported at the time of this writing in a range between 3.25% and 3.5%. Naturally, it’s important to know that best execution rates are not available to all borrowers or from all lenders; your financial qualifications play a big part in your access to such rates. Extremely well qualified borrowers MAY qualify for the lower end of these best execution ranges, assuming there is a participating lender willing to offer such rates.
Some industry professionals are encouraging borrowers to lock, with the idea that floating is more risky when there has been volatility and could be more to come. If you are closing a loan within the short term, you may do well to seriously consider such advice. Borrowers with the luxury of more time should ask for some advice about locking or “floating” (waiting for a more advantageous interest rate in hopes one will come along). It’s your decision, it’s important to make the most informed choice you can.
Friday could mean more gains for FHA mortgage loan rates or it could go in the opposite direction depending on the contents of the Employment Situation Report and investor reaction to it. Keep your eyes on the headlines to see what happens come Friday.
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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