Articles in Category: Fixed Rate Mortgage

February 9, 2017

Mortgage Rate Trends: Improving

There are factors that directly affect mortgage loan interest rates, and there are those that work more indirectly. Economic data, breaking news, and sometimes even the overall mood of investors on a given day or in a given week could be factors in which way rates are moving. Right now, investors seem very keen on putting money into less risky avenues (such as bonds), and that is one thing that is helping rates improve this week. We’ve seen an overall downward trend in the last few business days that has resulted in 30-year fixed rate conventional mortgages creeping back towards the bottom part of the range we’ve seen rates hover in since the start of 2017. At the time of this writing, 30-year fixed rate conventional mortgages are at or | more...

February 7, 2017

Mortgage Loan Interest Rate Trends: Two-Week Lows

By Joe Wallace

Mortgage rates took a move lower on Monday to levels many have been hoping to see more of in the last two weeks. Though the move does not dramatically change mortgage loan interest rate numbers, could we be on the start of a short-term trend due to global economic uncertainty? Some of our sources seem to think that at the very least, today’s downward movement was inspired by investors seeking safer havens, with mortgage rates reaping the benefit of their investment activity. 30-year fixed rate conventional mortgages are now reported in a best-execution range between 4.125% and 4.25%. Affected borrowers may notice the changes reflected in closing costs rather than an actual rate adjustment. FHA mortgage rates continue in their best execution comfort zone at 3.75%. FHA rates often take | more...

February 6, 2017

Mortgage Rate Trends: Higher, Lower

By Joe Wallace

Last week, mortgage rate numbers basically see-sawed within the range we’ve been looking at ever since the new year began. Mortgage rates began last week lower, but moved up and down from Wednesday on due to a variety of economic data releases and investor reaction to them. The Fed also made a statement last week that negatively affected rates. The causes of the ups and downs are not directly tied to rate performance, but investor reaction to the economic developments and data of last week does affect rates. Overall, we’re seeing about the same rates at the time of this writing as we reported last week, more or less, but changes in closing costs will be apparent to borrowers affected by those changes. At the time of this writing, 30-year | more...

February 2, 2017

Mortgage Loan Interest Rate Trends: Edging Higher

By Joe Wallace

Much attention was given to the Fed on Wednesday, but there was no hint of another planned rate hike; good news for now but that did not help mortgage loan rates in the end as stronger-than-expected jobs data helped put upward pressure on rates. Those who are not used to watching mortgage rate trends may be confused at this, seeing that what’s good for the economy will often be bad for mortgage rates. And that is not just perception. When economic data such as the Employment Situation Report shows strength, that often equals higher rates in the short term. Such reports do not directly affect mortgage loan interest rates, but investor reaction to that data can and often does. And such was the case on Wednesday, with stronger employment figures | more...

January 31, 2017

Mortgage Rate Trends: Opening Lower

By Joe Wallace

Mortgage rates ended last week nearly exactly where they started after some ups and downs, and on Monday rates opened the week a bit lower. However, the lower rate just pushes things back closer to the bottom part of what market watchers have labeled the new, higher range. We started seeing that higher range come into plat at or near election time-markets hate uncertainty and investor behavior between November 2016 and January 2917 has demonstrated that rather well. At first it wasn’t clear what was going to happen with short-term mortgage rate trends in general, but now we see that new and higher range at work in the short term. There are always influences (world news and events, economic data, unexpected changes in regulations or new legislation) that can alter | more...

January 24, 2017

Mortgage Rate Trends: Sharply Improved

By Joe Wallace

You may have noticed some extra coverage of mortgage rate trends in the last few weeks; rates have moved up and down in ways that seem to insist on added coverage, and Monday’s mortgage rate activity was definitely that. Rates recovered ground lost in the previous week and part of the reasons for that are also the reasons we saw higher rates in our last report; there is still a great deal of uncertainty among the markets and investors when it comes to economic policy, how the new administration will deal with overseas trade and other important issues. Mortgage rate trends currently reflect this uncertainty. Investors reacted to the earliest activity from the new regime in Washington D.C. and those reactions helped push mortgage rates lower. We’re now seeing a | more...

January 23, 2017

Mortgage Loan Interest Rate Trends: Higher

By Joe Wallace

Mortgage loan interest rate trends have been up and down within a certain range in the new year, but uncertainty over the new administration in Washington D.C. has investors skittish. Since our last report we’ve seen mortgage loan rates push higher, with some lenders hitting 4.375% territory (best execution). For 30-year fixed rate conventional mortgages, our sources say that means that at the time of this writing, there’s a best execution range that starts at or near 4.125% (a smaller number of lenders offering this) and ending with Friday’s at-or-near 4.375% for other lenders. FHA mortgage rates are at the time of this writing still holding at a best execution 3.75%, but that’s likely to change soon if the upward trend remains. As always, the rates you see listed here | more...

January 19, 2017

Mortgage Rate Trends: Moving Higher

By Joe Wallace

While we don’t report on mortgage rate trends on a daily basis, we do give more time to that coverage when circumstances warrant, and this week definitely rates a closer look at the trends. Since our last report, mortgage rates moved decisively higher, pushing back in the direction of the mid-four percent zone (but not there yet). Some market watchers blame (at least in part) bond market performance for the most recent upward spike that pushed 30-year fixed rate conventional mortgages into a range between a best execution 4.125% and a best execution 4.25%. Prior to that, coming out of the weekend we saw more lenders at the lower end of that range. Could some borrowers see them most recent changes reflected in closing costs rather than actual mortgage rate | more...

January 18, 2017

Mortgage Rate Trends: Going Lower Again

By Joe Wallace

Since our last report, the mortgage rate trend has swung back to improvements, taking back loses incurred last week and dropping hints that things could be settling into a new range. It’s still early days yet, but industry professionals are talking about these gains in association with weaker stock market performance, talk of European economic issues, and bond market activity. If the current trend persists, we might see rates (best execution) at or near current levels, giving those inclined to float a better picture of where things could go if upward pressure resumes. If you haven’t made a mortgage rate lock commitment with your loan officer, at present it might be easier to set your cut-off; if you decide to “float” until rates improve or cut your losses and lock | more...

January 17, 2017

Mortgage Rate Trends: Edging Higher

By Joe Wallace

Markets were closed on Monday for the Martin Luther King, Jr. holiday, so today’s post should be read with that in mind. Since our last report, mortgage rate trends have taken a turn upward. That move has given back some of the gains mentioned in our last report, but at the time of this writing we’re still looking at changes small enough to be reflected mostly in closing costs for affected borrowers, but some lenders have repriced as we’ll see below. The upward move comes in spite of some retail sales economic data that has (in the past) helped mortgage rates rather than hurt them, but the existence of data of that nature doesn’t guarantee movement in mortgage rates; it all depends on investor reaction to the data. And we | more...