July 29, 2015
For about ten business days now we’ve watched mortgage loan interest rates either hold steady or make small improvements. The gains aren’t dramatic enough from day to day to force much change in the best execution numbers we report here; instead borrowers likely notice the difference in closing costs. But whatever the case, ten days of rates that aren’t getting any higher is a good thing after the sustained upward trend we’ve witnessed this summer.
Yesterday (Tuesday July 28) we saw the first day of slightly higher rates since that holding-to-slightly-improved trend began. The move higher certainly wasn’t enough to push rates out of their current comfort zones, so we have 30-year fixed rate conventional mortgage loans holding steady (best execution) at the 4.0% to 4.125% range we’ve been discussing for a while now. FHA mortgage loan rates are also holding steady in a range of best execution numbers with 3.75% at the low end and 4.0% at the upper end of the range.
Best execution numbers are offered to extremely well qualified loan applicants with outstanding FICO scores and other financial qualifications. Your experience may vary and your access to these rates may be determined by your FICO scores, availability of a participating lender, etc.
The overseas economic headlines that have influenced rates in the last two weeks or so–China stocks and Greek economic woes–haven’t gone away completely, though their influence is reduced at the moment. Domestic news such as Fed policy on a possible interest rate hike is more influential at the moment and many industry pros are advising borrowers within 30 days of closing to seriously consider locking instead of floating.
Your lock/float decision is an important one, and it’s best to make the most informed decision you can. Keep an eye on the financial headlines this week if you are still undecided; there is still some uncertainty that could affect mortgage rates depending on investor reaction to things like Fed policy announcements and other domestic economic data releases.
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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