March 28, 2016
Last week, mortgage rates were on an upward trend, moving higher in small increments three out of the four business days before the long weekend. On Wednesday there was a glimmer of recovery, but on Thursday rates were back on the move upward, eliminating the previous range of rates for conventional mortgages and consolidating into one fixed-rate best execution number.
30-year fixed rate conventional mortgages had been in a best execution range between as low as 3.625% (the previous Friday) and 3.875%. We closed out the week with rates moving into a best execution 3.75% depending on the lender. In some cases borrowers may notice changes in closing costs rather than actual rates, but suffice it to say that it’s been a bumpy road for these rates lately.
FHA mortgage rates are still being reported in a best execution comfort zone range between 3.25% and 3.5%. If an upward trend persists we will likely see that range disappear soon in favor of a 3.5% best execution rate. That is dependent on market forces, investor reaction to the latest trends, breaking news, and other factors.
The best execution rates you see here are not available to all borrowers or from all lenders. Your ability to access these rates depends greatly on your FICO scores and other loan qualifications. Your experience may vary.
What’s ahead for rates this week? It’s not clear but there are some scheduled events that could have the power to move rates one way or the other. Fed Chair Janet Yellin is scheduled to speak on Tuesday, the same day a consumer confidence report is due out.
Friday, April Fool’s Day, the always-important Employment Situation Report is due, so that could also have an effect on rates. If you are on the fence this week about locking or floating it may be best to have a conversation with your lender sooner rather than later. Floating is never without risks, but this week you should definitely get some advice about possible elevated risk ahead of those scheduled events.
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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