Articles in Category: Fixed Rate Mortgage

January 16, 2017

Mortgage Rate Trends: Edging Higher

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 know that investor reactions aren’t always predictable and don’t always follow historical precedent. 30-year fixed rate conventional mortgage loan interest rates are | more...

January 12, 2017

Mortgage Rate Trends: Improving

By Joe Wallace

Before the new year, but after the 2016 election, mortgage rate trends were in what seemed to be an upward trajectory due to a variety of factors including uncertainty among investors regarding the new administration. But since the new year, we’ve seen more recovery, including the days following our last report. On Thursday, mortgage rates continued improving in small increments, with affected borrowers often getting the benefit in closing costs rather than an actual change in the mortgage rate. At the time of this writing, 30-year fixed rate conventional mortgages were at a best-execution 4.125%. That’s not a change from our previous report, but according to our sources more lenders are offering this best-execution rate now than since our last post. 4.125% could be at or near what some market | more...

January 10, 2017

Mortgage Rate Trends: Moving Lower

By Joe Wallace

Though the borrowers affected by Monday’s move lower may find the resulting improvements reflected in closing costs rather than in actual mortgage rate changes (depending on the lender), the start of the week did find rates moving low enough to erase the upward movement from the end of last week. Market watchers have stated that we’re entering a phase where there are hopes of an overall downward trend, but it’s too early to call it as such. What we seem to have at the moment is a pushback against the higher movement that began post-election, but whether that’s a short-term bump in the road or not can’t be determined…yet. On Monday, 30-year fixed rate conventional mortgages moved more decisively into a best-execution 4.125%, which basically means that more lenders are | more...

January 9, 2017

Mortgage Rate Trends: Lower Overall

By Joe Wallace

Since our last report we’ve seen a mortgage rate recovery of sorts, but it is still too early to label it on overall short-term downward trend. Last week rates moved lower in short-term ways that give some market watchers reason to use the term “correction” in their reports, but Friday’s Employment Situation Report did cause a bit of an upward turn for mortgage loan interest rates. The key to Friday’s move is that the changes weren’t terribly surprising to those paying close attention, and even with a modest readjustment, we’re still looking at numbers we haven’t really since since the election, as you’ll see below. 30-year fixed rate conventional mortgages moved as low as a best-execution 4.125%, but 4.25% is also available from some lenders, so we have a best | more...

January 5, 2017

Mortgage Rate Trends: Moving Lower

By Joe Wallace

Since our last report, mortgage rate trends have been looking downward rather than upward, which is a welcome development. It’s far too early to call it a “downward trend” but for FHA borrowers especially this week has been a better one. There is still at least one significant economic data release (employment data) that could affect mortgage loan rates this week depending on investor reaction, and it’s best in the early days of 2017 to view any improvement as just that rather than indications that we are moving out of the upward trend that began around the time of the November election. At the time of this writing, 30-year fixed rate conventional mortgages were reported at a best execution range between 4.125% and 4.375% depending on the lender. Our sources | more...

January 3, 2017

FHA Mortgages: Loan Basics For 2017

By Joe Wallace

For those who are weighing their real estate options in 2017, an FHA home loan can be an important option. Compare the down payment and interest rates on FHA mortgages with their conventional counterparts and it’s easy to see why many borrowers opt for an FHA mortgage. FHA loans, like most mortgage loan programs (with the exception of VA home loans, which are in general available only to qualifying military members), require a down payment which is usually 3.5% of the adjusted value of the property. Your down payment is required above and beyond other closing costs, mortgage insurance, etc. and must come from approved sources such as savings/checking accounts, the proceeds from cashed-in investments, cash saved at home, etc. Your down payment cannot come from payday loans, credit card | more...

January 3, 2017

Mortgage Rate Trends: Closing Out 2016 Lower

By Joe Wallace

Mortgage rate activity in the last days of 2016 might have, to some, started to look like a recovery trend, but it’s not safe to declare that just yet in spite of some overall downward movement at the very end of last year. The new year has plenty of early potential for volatility depending on a variety of factors, not the least of which involve a new White House administration. Last week rates closed on the final trading day of the year (for America) with rates moving low enough to push 30-year fixed rate conventional mortgages into a best execution range with 4.125% at the bottom and 4.375% at the upper end. That’s as close as rates got to breaking through the 4.0 zone and into the high three percent | more...

December 29, 2016

Mortgage Loan Interest Rates: Lower

By Joe Wallace

Mortgage loan interest rates clawed back some of their losses on Wednesday, dropping down to 14-day lows and creeping back from the mid four-percent zone a bit. The gains came after bond market activity favorable to mortgage loan rates. Professional market watchers say we’re likely not to see any significant, decisive movement until well after the New Year’s Eve holiday, but the improvements on Wednesday are encouraging to some. There are plenty of factors that could still put upward pressure on mortgage rates including economic uncertainty related to the American political climate. “Wait and see” is the phrase most used when contemplating this as a spoiler on mortgage rates. Borrowers unsure of whether to lock in a mortgage rate commitment with a lender or not should discuss the current rate | more...

December 27, 2016

Mortgage Rate Trends: Slightly Lower Ahead of Holidays

By Joe Wallace

Mortgage rate trends ahead of the extended weekend included some very minor improvements-welcome changes from the recent steady upward momentum we’ve seen post-election. But these changes aren’t enough to push best execution rates lower, it’s going to take either many days of sustained-but-small improvement or some more significant changes in the short term to revise rates lower. Borrowers affected by the recent incremental moves lower will likely see the changes reflected in closing costs. Just ahead of the holiday weekend, 30-year fixed rate conventional mortgages were reported in a best execution range between 4.25% and 4.5%. That’s quite a long spread, but it is important to keep in mind that the most competitive lenders (and a small number of them, too) are the ones at the lowest end of the | more...

December 22, 2016

Mortgage Rate Trends: Slightly Lower

By Joe Wallace

Since our last report on mortgage rate trends, we’ve seen a minor bit of improvement in interest rates, but the numbers still remain at highs not seen in the last couple of years. The improvements will likely be reflected in closing costs where applicable, and the range of rates is still at or near what it’s been in recent days. That means that 30-year fixed rate conventional mortgages are holding in a range between 4.375% at the very bottom end and 4.5% at the top end, best execution. FHA mortgage rates are holding in a best execution comfort zone of 4.0%, though if upward movement resumes we could see this turn into a range of rates also. Best execution rates assume ideal borrowers. Your FICO score, loan repayment history, and | more...