July 11, 2015
FHA and conventional mortgage loan interest rates had a rocky week. On Friday rates moved higher for the second day in a row, which has erased the progress we had seen in the rates since investors started worrying about more significant stock market woes in China.
Overseas economic developments can and do influence mortgage loan rates, but that influence can be fickle and subject to change. What looked dire a day or two ago (and gave some welcome downward movement in mortgage loan interest rates) is now suddenly no longer as much of a factor where FHA mortgage rates are concerned.
30-year fixed rate conventional mortgage loan interest rates had been flirting with the bottom of the four percent range, best execution. Now those rates are back up to a range between 4.125% and 4.25%.
FHA mortgage loan interest rates are still in the range of rates we’ve been reporting, between 3.75% and 4.0% best execution. Remember, best-execution rates are not available to all borrowers or from all lenders. Your financial qualifications will determine the rates available to you and your experience may vary.
The presence of China and Greece economic headlines as influences makes for a volatile set of conditions–locking is not recommended by industry pros at this time unless you have the ability to take the loss should this news or other developments continue to put upward pressure on mortgage loan rates. More headlines from Greece are expected this weekend which could a big spin on rates come Monday. Many believe it’s far too risky to advise floating for now.
Keep an eye on both overseas financial headlines and those at home–a scheduled economic data release in the form of a Retail Sales report is due out on Tuesday, and that could be and additional factor in the rise or fall of mortgage loan rates in the short term.
Do you have questions about FHA home 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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