June 20, 2015
It’s been an interesting week for mortgage rates–there was some breath-holding ahead of the Fed announcement that interest rates would not be hiked just yet, and we’re entering a period now where market watchers have labeled 2015 as a time of upward movement for rates in general.
But the overall trend this week wound up being downward movement, however small. Rates fell a bit on Friday to end the week, but you’ll notice that a smaller number of lenders are offering the lower best execution 4.0% than those offering 4.125% best execution on 30-year fixed rate conventional mortgages.
FHA mortgage loans still haven’t budged out of the best-execution comfort zone of 3.75% for the most qualified borrowers. Remember, best execution rates are not available to all applicants or from all lenders and your FICO scores and other qualifiers will play a major role in your access to such mortgage loan interest rates. There can and often is more variation among participating FHA lenders than their conventional 30-year fixed rate mortgage loan counterparts.
There is some serious potential in the coming weeks for overseas economic news–especially headlines about the Greek debt crisis–to affect mortgage loan rates here. Keep a close eye on those developments in the coming days to get an idea where things might be headed. There are some scheduled domestic economic data releases that could also help or hurt mortgage loan rates next week. We’re looking at reports including New Home Sales, Durable Orders, and a Fed price index known as the Core PCE all being released next week-and not all on the same day. Tuesday and Thursday could be important days for those who still need a mortgage rate lock.
Market watchers believe it is still quite risky to float at the moment, and given the fact that there will be Greek economic headlines and three scheduled domestic economic data releases are due next week, that advice shouldn’t be ignored–even if you decide not to rate lock at the moment it’s best to take those factors into serious consideration.
Do you have questions about FHA loans? Ask us in the comments section. All questions and 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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