April 25, 2017
Since our last report, we’ve seen rates climbing again, but the most recent uptick in numbers has a lot to do with global political headlines rather than domestic economic issues or market corrections.
The election results in France have certain implications-one candidate favors a French version of Brexit and investors watching the results unfold have reacted in ways unfavorable to mortgage loan interest rates.
At the time of this writing, we’re seeing upward movement in rates; 30-year fixed rate conventional mortgages are in a best execution range between 4.0 and 4.125%-remember last week we reported some aggressive lenders were offering best execution rates below the four percent line for the first time in a long while.
FHA mortgage loan rates are reported at the time of this writing in a best execution range between 3.5% and 3.75%. Remember that it’s been a while since FHA rates have fallen to these lows, and while rates may vary more among participating lenders than non-FHA mortgages, the return to mid-three percent territory is welcome regardless of how long or short-lived that return might be.
Rates have been, in the last few business days, been either “sideways” or only slightly higher. Some will notice the increases in higher closing costs rather than actual increased rates.
Others may see their actual interest rates go up depending on circumstances. We watched rates move downward for a bit, then watched them creep upward again. This makes a tricky decision when choosing between locking in a mortgage rate commitment with your lender, or floating to see whether downward movement resumes.
Floating is never risk-free, and borrowers should decide in advance how far rates might climb before they cut the losses and make the commitment. If you are unsure, have a conversation with your lender about the best course of action and get sound advice based on your loan officer’s experience. An informed decision is the best one.
As always, the mortgage rate numbers listed here are best execution, which means ideal conditions are assumed. Your FICO scores, loan repayment history, and other financial qualifications will play a big part in determining your access to rates like the ones listed here. They are not available to all borrowers or from all lenders. Your experience may vary.
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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