August 8, 2015
Mortgage loan rates had a tug-of-war this week. On Monday rates pushed back into the high three percent range (best execution) for 30-year fixed rate conventional mortgages, but after that rates moved higher due to comments from the Fed on interest rates, and kept moving higher the next day as scheduled jobs data release time approached. But once that jobs report came out, there was already one day of recovery, and Friday saw reports of a rally by day’s end, not higher numbers–the final count for the week was three days of improvement against two days in a row for some upward movement. But we’re still seeing rates hovering at or near the high three percent zone.
30-year fixed rate conventional mortgage loans are, best execution, sometimes dipping back into the high three percent range though many lenders may be offering 4.0%. FHA mortgage loan interest rates remain in the 3.75% comfort zone established once the range of best execution rates was eliminated (4.0% was at the upper end of that range). FHA rates tend to vary more from lender to lender, so shopping around for the lowest rate is definitely a good strategy.
We’ve seen a waning influence of Greek economic headlines and China’s stock market woes–for a time there it appeared that any news on those two issues had the power to push mortgage rates depending on investor reaction to them. Now the emphasis seems to have shifted back to domestic economic news–the Fed, bond markets, jobs data, etc.
This shifting center of influence is fairly typical depending on the types of headlines and scheduled economic data release at any given time. Some industry professionals are advising borrowers who floated into the jobs report on Friday continue to do so until Monday; locking or floating is the borrower’s decision to make–it’s best to make the most informed decision possible.
Remember, the rates we discuss here are reported as best execution rates, which assume an applicant with ideal financial qualifications. Your FICO score, loan repayment history and the availability of a participating lender may all play a role in your access to such rates. Your experience may vary.
Do you have questions about FHA home loans? Ask us in the comments section.
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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