July 22, 2015
This week has been an interesting one for mortgage loan interest rates. In fact, for the last seven business days, rates have varied between flat to slightly improved. The best execution rates for 30-year fixed rate conventional mortgages have moved from 4.25% at the upper end of a range of best execution rates to between 4.0 and 4.125% depending on the lender. Tuesday saw mortgage loan rates fall to fourteen day lows–the rates have been improving in very small increments, but any change for the better is definitely welcome.
FHA mortgage loan rates are still within the previously reported comfort zone between 3.75% and 4.0% best execution. It may take several days of sustained improvement at the current rate of change, or a day or two of more dramatic adjustments in mortgage loan interest rates before we see FHA mortgage rates break out of this best execution comfort zone. Remember, “best execution” refers to ideal scenarios that assume ideal conditions.
Your experience may vary–access to best execution rates depend greatly on FICO scores and other financial qualifications. Best execution rates are not available to all borrowers or from all lenders.
Some of the prime movers of interest rates as of late–the Greek Eurozone crisis and China’s stock market woes–have receded in importance headline-wise this week. Some market watchers speculate that it may take some major breaking news from overseas to again influence the rates in the way they did in the last two weeks. It’s been a fairly quiet week so far for mortgage loan rates, and industry professionals are saying that where in the last couple of weeks “lock” was the advice of the moment.
Now they are saying that while floating–delaying an interest rate lock until more favorable rates arrive–is not without risk, those who can handle the financial risk of doing so may do so now under more favorable conditions. Again, floating is never without risk, so make your lock/float choices carefully and with as much information as possible.
Do you have questions about FHA loans? Ask us in the comments section. All comments are held for review.
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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