November 22, 2016
Since our last report on mortgage rates, we’ve seen rates climb to highs not seen in well over a year. The markets that influence mortgage loan interest rates are reacting to economic uncertainty-specifically the unknowns related to fiscal policy for the incoming administration in Washington. Markets don’t like uncertainty, and current investor behavior is putting upward pressure on mortgage rates overall.
30-year fixed rate conventional mortgages are, at the time of this writing, reported at a best execution range between 4% and 4.125%. FHA mortgage rates are in their own best execution range between 3.75% and 4%.
We haven’t seen rates break into the four percent zone in a very long time, and market watchers speculate that it will take a big dramatic shift to get back into the three percent range in the short term. We’re not likely to get that this week, going into a holiday weekend.
As always, the mortgage rates you see here assume ideal conditions including a borrower with outstanding FICO scores and other financial qualifications. Best execution rates are not available to all borrowers or from all lenders. Your experience may vary.
What’s the advice industry pros are giving out right now? Locking for borrowers within 30 days of closing-in the current mortgage rate climate professionals say worrying about what rates might do tomorrow or the next day isn’t worth the risk-as we have seen, rates aren’t afraid of moving higher in the short term, but how long until a correction? For many in the industry, the risks of trying to hold on until then outweigh the advantages.
If you aren’t sure about locking in a mortgage rate commitment with your lender or “floating” (against the general advice of the market watchers at present) in hopes of a better rate, discuss your concerns with your loan officer. Some good advice will go a long way, especially given the current state of things.
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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