May 29, 2015
Since the three-day weekend that made this a short trading week, the overall trend in mortgage loan interest rates at the time of this writing has been “hold steady” or slightly lower–but not much.
The month of May has seen basically what amounts to a new and higher range in mortgage loan rates overall–though still loan in comparison to previous years–and we’re seeing 30-year fixed rate conventional mortgage rates hovering at or near the 4.0% mark, best execution. Friday’s trends brought the 30-year fixed conventional mortgage loan rates in some best execution instances below 4.0%. Remember, “best execution” means rates offered extremely well-qualified borrowers. Your experience with these rates may vary.
FHA mortgage rates have found a comfort zone of 3.75%, not as good as the previously held 3.5% (or thereabouts) best execution. The numbers, while slightly higher, are still subject to change due to volatility in the markets based on overseas financial headlines (including Greek debt, which rears its head again in the news among many other issues) and stateside economic data releases.
The prevailing advice from many industry professionals seems to be “lock in the short term” unless those willing to float–to avoid committing to a mortgage loan interest rate lock in hopes of more borrower-friendly developments in the following day or days–have a high “tolerance for risk” meaning the borrower isn’t quite as worried if rates creep higher rather than lower.
Float or lock, it makes sense to get some expert advice and make the most informed decision you can. It never hurts to ask your loan officer what he or she thinks on the issue.
The Greek debt issue could continue to bring headlines into early June when there’s a day of reckoning, so to speak, over repayment of that debt. Keep your eyes on those headlines as well as domestic employment data due a week from today (Friday May 29, 2015) which could have an influence on rates depending on investor reaction to that data. We’re in for some interesting times–there’s no telling which way things might head from here until some of the above developments have played out.
Do you have questions about FHA home loans? Ask us in the comments section. All questions and comments are reviewed before being posted on the site.
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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