August 15, 2015
Mortgage rates had a back-and-forth week, with rates starting off higher, wiping out the gains seen on the previous Friday. Then on Tuesday, news of China’s currency policies pushed rates back down into the high three percent range (best execution) for 30-year fixed rate conventional mortgage loans.
FHA rates stayed in their comfort zone of 3.75% that day in spite of the improvements; FHA rates tend to take longer to adjust until there’s been a sustained move in one direction or the other, or a dramatic change in rates on a single day or two.
Overseas currency drama over the value of the Yuan had an effect on rates all week–either waxing or waning influence, depending on the day and sometimes even the time of day.
On Wednesday, rates began creeping higher–opening stronger in the morning according to our sources, but later creeping higher. The end result on that day was that rates wound up “unchanged” as previous gains were wiped out by afternoon changes.
The upward movement would push rates to 4.0% best execution by week’s end, though some may find rates on either side of that number depending on the lender and financial qualifications. FHA mortgage loan rates remain, at the time of this writing, in the 3.75% comfort zone, though this rate (best execution) will vary among lenders.
Best execution rates are offered to the most qualified borrowers. Your FICO scores and other financial qualifications will play a large role in your access to such rates.
The direction of rates into next week is unclear, but many industry pros remind borrowers that now is still a very good time to lock in mortgage loan rates as they are at or very near to what some are calling “multi-month lows”. Locking or floating is a choice only the borrower can make, and it pays to ask the advice of your lender before making a final decision. Keep your eyes on China currency news next week, as it could still play a role in the rise or fall of rates here at home, depending on the content of those headlines.
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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