September 2, 2015
Mortgage rates have ranged from unchanged to slightly higher this week, depending on the lender. There is a great deal of volatility present and part of the unchanged-to-slightly-higher activity we’ve seen this week is due to a possible rate hike by the Fed as early as September.
Our sources report no clear indication as to whether September is the month when interest rates finally do get a hike by the Fed, but a jobs report due out on Friday could be a strong indicator as to which way the Fed might go in the coming month.
Or it may not, depending on the contents of that report. “Wait and see” is the going advice seems to include the word “lock” a great deal when it comes to deciding whether to commit to a mortgage loan interest rate with your lender or waiting until conditions become more favorable–which is not guaranteed.
Depending on your “risk tolerance”, floating into Friday’s jobs report seems ill-advised based on the talk we’re seeing from industry professionals.
30-year fixed rate conventional mortgage loan interest rates are reported at 4.0% best-execution though some extremely well qualified borrowers may find lenders willing to offer 3.875%.
FHA mortgage loan interest rates are holding steady in the 3.75% comfort zone (best execution) but could we see a move to a range of rates come Friday depending on the outcome of that much anticipated jobs report, investor reaction to it, and other market factors?
Remember, best execution rates assume ideal conditions–your FICO scores, loan repayment history and other financial qualifications will determine your access to such rates. These rates are not available to all borrowers or from all lenders. Your experience may vary.
Do you work in residential real estate? You should know about the free tool offered by FHA.com. It’s designed especially for real estate websites–a widget that displays FHA loan limits for the counties serviced by those websites.
It is easy to spend a few seconds customizing the state, counties, and widget size for the tool; you can copy the code and paste it into your website with ease. Get yours today: http://www.fha.com/fha_loan_limits_widget
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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