June 11, 2015
European economic news has been fueling an upward trend in mortgage loan rates, pushing numbers higher than we’ve seen all year–the highest numbers of 2015 may still be lower than in years past, but the upward trajectory of mortgage loan rates in general has made some wonder where it might end. Did today’s market activity provide an “out” for rates to at least take a breather?
On Thursday, rates did stop their upward climb (at least for one day) and pushed back down. 30-year fixed rate conventional mortgage rates had been creeping toward 4.25% as the predominant best-execution rate (out of a range between 4.125% and 4.25%).
After today’s downturn the best execution rates are closer to 4.125%. Should a downward trend happen–lower interest rates over a period of days–we might see rates move below the four percent range and back into the high three percent zone, but whether or not that will happen remains to be seen. A one-day recovery doesn’t necessarily signal sustained improvement.
FHA mortgage loan rates have remained in the 3.75% comfort zone we’ve been reporting for several days now. If today’s rate activity had pushed higher, could FHA mortgage loan rates have moved in to a range with the current best execution rate at the bottom of that range? It’s possible and could still happen if rates begin to climb higher once more. Today’s rate movement does forestall that a bit, so it will be a wait-and-see game from here til next week to see where things might be headed.
Remember, when we discuss the rates you see listed here, we’re talking about “best execution” rates, which are offered to applicants who have outstanding FICO scores and loan repayment histories. Your experience may vary depending on a variety of factors including the availability of a participating lender.
Overseas financial headlines (European Central Bank and the Greek economy are two of the most recent) continue to influence mortgage loan rates here, so pay attention to those developments for the short term if you are trying to decide when to get a rate lock or if it’s better to float. Make the most informed decision you can; an informed borrower is far happier with the choices made in the home loan transaction.
Do you have questions about FHA home loans or refinancing? Ask us in the comments section. All questions and comments are held for review.
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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