January 22, 2016
Mortgage rates hit lows not seen in many months at the end of last week, and in spite of some small amount of lost ground we still see mortgage rates at sub-four percent lows at the time of this writing. Thursday saw 30-year fixed rate conventional mortgage loan interest rates staying, best execution, in a range between 3.75% and 3.875%.
FHA mortgage rates are holding steady at the time of this writing at 3.5% (best execution) which is a far better comfort zone to fall into than the previously long-held 3.75%.
How long FHA rates will remain here isn’t clear but the mortgage rates today held fast in spite of some market conditions that ordinarily would put upward pressure on rates. So it’s clear that there’s some potential for rates to move higher over the short term should those conditions persist.
Best execution rates are not available from all lenders or to all borrowers–your financial qualifications will play a major role in determining your access to the rates you see here. Your experience may vary.
Advice on locking and floating is mixed–there are conditions including stock market woes and oil prices that contribute to potential volatility in the short term. We’ve seen rates improve because of poor stock market conditions but certain bond market behavior for the worse could negatively affect mortgage rates if they persist.
So borrowers who can’t decide whether to lock or float have to choose their moment–rates are low right now and holding out for an even lower rate could pay off depending on how the winds of fortune on the markets blow on Friday. But floating is never risk-free, so it’s best to ask your lender for some advice about the risks and rewards of floating in the current mortgage rate environment.
Do you work in residential real estate? You should know about the free tool offered by FHA.com. It is designed especially for real estate websites; a widget that displays FHA loan limits for the counties serviced by those sites. It is simple 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.
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