Articles in Category: Fixed Rate Mortgage

October 17, 2016

Mortgage Loan Rates: Friday Bounce

In our last report, we noted that mortgage loan rates had made some improvement, but the very next day we saw rates bouncing to highs not seen in several months-a move that not only affected conventional mortgages, but also served to push FHA mortgage loan interest rates out of their long-held comfort zone and into a new range. Some market watchers noted that the move higher didn’t begin until later in the day on Friday, which could have resulted in some lenders failing to change or “reprice” on that day. Depending on how things go on Monday, that could mean higher numbers for some lenders who didn’t reprice already. That means those contemplating their options when it comes to locking in a mortgage loan interest rate commitment with their lender | more...

October 14, 2016

Mortgage Rate Trends: Recovery

By Joe Wallace

After ten days of no improvement, upward pressure on interest rates finally broke on Thursday, but some market watchers are not ready to declare that day’s respite from higher numbers a decisive victory. In fact, some say this could be a resting moment before rates continue to push upward. Some industry professionals are using the word “lock” quite a bit in public statements aimed at those who haven’t yet made an interest rate lock commitment with their lenders and are within a month to two months of closing. It’s hard to argue with their logic, and rates have been low for quite some time. Is the current trend just a short term development or do we have a new range of rates to look forward to in the coming months? | more...

October 12, 2016

Mortgage Loan Interest Rate Trends: Moving Higher

By Joe Wallace

Mortgage loan interest rates have been in a short-term trend with no improvements and/or upward movements for well over seven business days. Some market watchers believe this trend will persist a bit longer, and even though the highest rates we’ve seen in the trend are still considered low compared to previous years, it makes for a difficult choice for any borrower on the fence about locking or floating. 30-year fixed rate conventional mortgage loan interest rates are still within a range between 3.5% and 3.625%, but there are far fewer lenders offering the bottom end of that best-execution range. 3.625% is far more common, best execution. As upward pressure continues (assuming it WILL continue in the short term) we will eventually see that range disappear in favor of the higher | more...

October 10, 2016

Mortgage Loan Interest Rate Trends: Upward Trend

By Joe Wallace

For the past five business days, mortgage loan interest rates have been in an upward trend. Even after last week’s Employment Situation Report, which had weaker jobs data that anticipated, rates were still on a short-term upward swing. The employment report and mortgage loan rates aren’t directly tied together, but investor behavior associated with that report often has rates moving lower in the wake of weak jobs data. This time, investor behavior all but ignored this, and the week ended with rates closing out in a range for conventional mortgages higher than we’ve seen in a little while. 30-year fixed rate conventional mortgages closed out Friday in a range between 3.5% and 3.625% best execution. FHA mortgage loan interest rates are still holding in their 3.25% comfort zone, but if | more...

October 4, 2016

FHA Loan Facts And Fiction: First Time Home Buyers

By Joe Wallace

First time home buyers come to the FHA loan process with many questions. There are some long-held misconceptions about FHA mortgages that borrowers should know long before they fill out a loan application. Let’s examine some of them. One myth about FHA loans, and one of the most common, is that the FHA itself lends money to loan applicants. This is not true. Instead, the borrower must find a participating FHA lender, who has been certified by the FHA to issue home loans under the FHA single-family loan program. Another misconception has to do with the nature of the FHA loan program itself, which offers affordable home loans to all qualified applicants regardless of their status as a home buyer. That means that first time home buyers and those who | more...

October 3, 2016

Mortgage Loan Rate Trends: Mixed

By Joe Wallace

Mortgage loan interest rates closed mixed on Friday, gaining back some ground after a couple of days of slightly higher movement. Overall, last week was a bit of a tug-of-war, but on Friday best execution rates are still reported at levels we’ve seen all week, with minor ups and downs likely being reflected in closing costs rather than actual rate changes depending on the lender. 30-year fixed rate conventional mortgages ended Friday at 3.375%, best execution. Market watchers noted on Friday that some lenders marked up, some marked down, and it’s likely that some also stayed the same from Thursday. Bond market activity is a player in the Friday numbers, but how that factors into the week ahead remains to be seen. FHA mortgage loan fixed interest rates remain in | more...

September 29, 2016

Mortgage Loan Interest Rate Trends: Higher After Days Of Recovery

By Joe Wallace

Mortgage loan interest rates moved higher on Wednesday after a recovery streak that would have hit seven straight business days otherwise. In many cases borrowers would notice the Wednesday changes in closing costs rather than an actual higher rate, but as market watchers are fond of pointing out, even with recent moves higher we are still seeing rates at respectable lows. 30-year fixed rate conventional loans ended Wednesday at a best-execution rate of 3.375%, while FHA mortgage loan interest rates (best execution) are at or near their current comfort zone of 3.25% depending on the lender. You may notice greater variation in the actual rates offered by participating lenders, so it pays to look for the best rates and terms. Best execution rates are listed here assuming an ideal borrower | more...

What if my home was damaged in a natural disaster?

September 28, 2016

FHA Construction Loans: A Reader Question

By Joe Wallace

A reader asks, “Does FHA include loans for a construction to permanent mortgage?If so, can the construction be done by a licensed general contractor that does custom builds or does it have to be done by a licensed general contractor that only does spec builds? Is there other criteria/inspections that are specific to construction to permanent mortgage that are specific to an FHA loan?” This is a complex question, and FHA construction loans have issues far too numerous to address in a single blog post, but we’ll tackle the basics. FHA loan rules do allow for loans for new construction/proposed construction. This type of loan is more complex than a typical FHA mortgage and potential applicants are encouraged to discuss this option with a loan officer to learn what may | more...

September 27, 2016

Mortgage Loan Interest Rate Trends: Improving

By Joe Wallace

Mortgage loan interest rates improved on Monday, the fourth business day in a row that rates have recovered. There was an upward trend for some time, but some market watchers and industry professionals are using the word “rally” to describe what they’ve been seeing lately. There was considerable attention on the latest Fed statement about interest rates, but once “Fed day” came and went there was no significant change in investor activity-that is to say no increase activity unfavorable to interest rates in specific reaction to the Fed announcement. 30 year fixed rate conventional mortgage loan rates were reported at 3.375%, best execution, on Monday. That puts conventional loan rates in a single number rather than the range of best execution rates we saw previously. FHA mortgage loan rates are | more...

September 21, 2016

Interest Rate Trends: Higher Ahead Of Fed

By Joe Wallace

Mortgage loan interest rates moved a bit higher on Tuesday ahead of Wednesday’s scheduled Fed announcement, which can and has influenced mortgage rates (depending on investor reaction to the contents of such announcements). Most likely borrowers affected by today’s increase will notice the changes in the form of closing costs, and today’s move is essentially a trend we’ve been watching in the short term. 30-year fixed rate conventional mortgages are reported at the time of this writing at or near a best-execution 3.5%. FHA mortgage loan rates are holding, best execution, at 3.25%, having given up a previous range between 3.0% and 3.25% earlier. As always, the rates you see listed here are best execution rates, which means an ideal borrower is assumed (with outstanding FICO scores, credit history, and | more...