October 16, 2014
If you are interested in an FHA home loan this week or have been keeping an eye on FHA mortgage loan rates, you know this has been a particularly good time for mortgage rates. For a large part of the year we have seen the best execution rates for FHA home loans persisting at around 3.75%, down from an earlier long-held best execution rate average at or just above 4%, depending on the lender.
Volatile market conditions this week contributed to downward movement for interest rates–FHA mortgage rates have fallen from their long-held 3.75% comfort zone and fell into a range of rates between 3.375% and 3.5% best execution.
Some borrowers may get confused over the reports of “best execution” rates–what does this term mean? “Best execution” mortgage loan rates are those available to those with outstanding financial qualifications: ideal FICO scores and loan repayment history, for example.
“Best execution rates” are offered by a participating lender–something that’s not always possible when we’re talking about the most competitive mortgage loan rates on FHA Mortgages. If your lender chooses to offer a higher rate, that’s the choice of that financial institution.
Why are rates hitting lows not reported since as far back as the summer of 2013? Market watchers speculate on a variety of issues, but one thing that seems to be common–concerns over global economic growth. It’s not certain where mortgage rates might go from here, but the current set of concerns over global economic health is fueling investor reaction that can and often does benefit mortgage rates as the result of their investment choices.
When it comes to FHA mortgage rates, conventional loans, and VA mortgage rates, 2014 has been a year marked by a consistently downward trend. The movements have at times been very small, but over time these movements have kept rates for FHA loans in the sub-four percent zone.
Mortgage rate volatility this week makes calling an “average” for best execution numbers nearly pointless but for now, FHA rates are still in a average range between 3.375% and 3.5% best execution. We did see rates lose some ground on Thursday but in general, rates are at or near 16 month lows according to many sources.
Do you have questions about VA 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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