October 10, 2014
When it comes to FHA mortgage loan rates–or mortgage rates in general for that matter–last month the rate trends seemed to be centered around small, persistent upward pressure on mortgage rates. In the earliest days of October we seem to be moving back into an improvement trend, and if rate behavior on Wednesday and Thursday offer any clues, it’s possible that the positive momentum could bring benefits into the start of the new week.
30-year fixed rate conventional mortgages are moving into 4.0% territory (best execution) and while best execution numbers haven’t changed for FHA mortgage loans yet, borrowers may find that depending on the lender more competitive closing costs could apply. It’s important to shop around for the best interest rate you can, and rates do tend to vary more between FHA lenders than they typically do with conventional loans.
This week, FHA borrowers asking for advice on whether to commit to an interest rate or not yet likely got some“float” advice–borrowers who haven’t committed to an interest rate could hold off in hopes of getting an even better interest rate the following day. Floating always carries a degree of risk but in a climate of improvement, some feel waiting for a possible better rate tomorrow feels less risky.
We’ve definitely seen improvement in the rates this week, but how long will those conditions persist?
It’s never safe to assume that today’s mortgage rate conditions will prevail over a longer period of time. Breaking news, market developments or other factors could work change mortgage rates. That said, in the very short term the downward trend has definitely offered better rates to some borrowers who were willing to float another day in hopes of more improvement.
Here are the mortgage rate averages for the week ending October 10 2014. The numbers you see here are reported as best execution rates and may not be available to all borrowers or from all lenders. Your experience may vary based on your financial qualifications: FICO scores, loan repayment history and the availability of a participating lender.
30-year fixed rate conventional mortgages: Between 4.0% and 4.125% depending on the lender
FHA mortgage rates: 3.75% or higher depending on the lender
VA mortgage rates: 3.75% or higher depending on the lender
15-year fixed rate mortgages: between 3.25% and 3.375% or higher
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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