December 19, 2016
Since our last report on mortgage rate trends, we’ve seen the upward trend continue into highs not seen for quite some time. Market watchers note that some seasonal market trends that affect rates are at work here, but those forces are not the only ones with the power to alter mortgage rates (based on investor reaction to things like breaking economic or political news, etc.)
30-year fixed rate conventional mortgage rates have, best execution, moved into a range of rates that are at or near the mid four percent zone. At the time of this writing, don’t be surprised to find best execution conventional rates ranging between 4.25% and 4.625%.
The upper and lower ends of this range are more rare, but according to our sources certain lenders may offer extremely well qualified borrowers the lowest end of this range. Naturally your results will vary depending on the lender. FHA mortgage rates are, best execution, reported at 4.0%. Assuming the upward trend persists, it may not be long before FHA rates break out into a new range of rates with 4.0% at the low end.
As always, “best execution” refers to situations with ideal conditions including a very well qualified borrower. Your FICO scores, loan repayment and credit history and other factors will determine your access to interest rates like these. The rates seen here are not available from all lenders, or to all borrowers. Your experience may vary.
The end of the year financial activity from certain markets that affect mortgage rates may add a degree of unpredictability on a short-term basis. We could see fluctuation in rates daily depending on a variety of factors, but there is definitely talk among industry professionals that mortgage rate trends at present are not borrower friendly. Locking, instead of floating, seems to be the safest bet judging from what professionals are saying about the current upward trend.
If you aren’t sure whether you should lock a mortgage loan interest rate in with your lender or not, have a conversation with your loan officer and get some sound advice. You’ll be glad you did.
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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