September 5, 2015
It was a volatile week for mortgage loan rates in general. Many were looking to Friday as a big day for potential rate movement thanks to an anticipated jobs report. But when the Employment Situation report was released, it didn’t do much to rates as investors didn’t react to the data in ways that could have pushed the rates significantly higher or lower.
And so we saw rates inching back down on Friday, with 30-year fixed rate conventional mortgages hovering between 4.0% and 3.875%, best execution. Rates had been closer to 4.0% for much of the week until Friday, though some lenders may have offered the low end of the current range depending on borrower qualifications.
In all this week’s volatility and upward movement, FHA mortgage loan rates are still reported, best execution, at 3.75%. That comfort zone has been around for some time, though borrowers will find more variation among lenders for FHA mortgage loan rates. It pays to shop around. And remember, “best execution” rates assume ideal conditions such as outstanding FICO scores and other financial qualifications. Your experience may vary.
Many industry professionals advised undecided borrowers to float through the holiday weekend and possibly into early next week–locking a mortgage loan rate or floating without an interest rate lock agreement with your lender should be done with as much information as possible.
Make an informed decision about locking or floating, based on your tolerance for risk of higher rates should they occur during the period you choose to float in.
Do you work in residential real estate? You should know about the free tool offered by FHA.com. It’s designed especially for real estate websites–a widget that displays FHA loan limits for the counties serviced by those websites.
It is easy to spend a few seconds customizing the state, counties, and widget size for the tool; you can copy the code and paste it into your website with ease. Get yours today: http://www.fha.com/fha_loan_limits_widget
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.
Browse by Date: