February 12, 2015
FHA mortgage rates have been trending higher this week, with pressure on rates bringing 30-year fixed rate conventional mortgages up slightly higher every day in February so far. Bond markets and overseas economic news about the European Central Bank have contributed to those rates moving higher, but all the while, FHA mortgage loan rates have remained in a best-execution comfort zone of 3.25%.
But that changed on Tuesday after significant upward pressure that changed conventional rates finally pushed FHA mortgage loan rates higher–now found at the time of this writing in a range between 3.25% and 3.5% for the most qualified FHA loan applicants. Best execution rates are not available to all borrowers or from all lenders. Your FICO scores, loan repayment history and other factors will determine your access to these rates.
Some market watchers have observed that the upward pressure, having influenced rates for about eight days now, may be about to come to a halt–some point out that after a prolonged upward movement, a cooling-off period often follows, so it’s not clear what might happen in the next couple of days, but one thing is certain–in spite of the upward movement, mortgage loan interest rates are still good.
Those rates are in the high three percent range for 30-year fixed (best execution) and at the time of this writing FHA mortgage loan rates are, best execution, still in the 3.25%-3.5% range depending on the lender.
So while all this upward movement may sound dire, it’s still a very good time to be applying for a mortgage loan or refinance loan. Rates are sub-four percent, and if a break does come from the upward movement, we might see that trend persist a while longer.
Do you have questions about FHA home loans? Ask us in the comments section. All comments are held for moderation.
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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