November 20, 2014
Since our last report on FHA mortgage rate trends, we’ve seen a general downward trend in mortgage interest rates, but with the range we’ve been reporting (best execution) remaining.
Borrowers have in some cases seen the gains reflected in lower closing costs rather than the actual interest rate changing itself, while other borrowers may indeed have experienced an adjusted interest rate based on improvements than sent best execution rates back into month-long lows.
30-year fixed rate conventional mortgages have, best execution-wise, remained in their range between 4.0 and 4.125%, though some very well qualified borrowers may have gotten access to sub-four percent rates depending on the lender and the timing of the rate lock. But that doesn’t mean that all borrowers had that option–the rates we report on here are listed as best execution rates, which assumes ideal conditions including a participating lender and a very well qualified borrower.
When it comes to FHA rates, since our last report we’ve seen FHA interest rates settle into a best execution comfort zone of between 3.5 and 3.75% depending on the lender. FHA rates tend to have more variation between lenders than conventional equivalents, so it definitely pays to shop around.
Tbe future of the recent downward trend is uncertain. Thursday saw some upward movement in the rates, but nothing that erased the current range of best execution rates. Next week will likely reveal much about whether the gains of last Friday and beyond will continue, but borrowers will hear much advice urging interest rate locks within 15 days of closing in the current rate environment.
That may or may not help you decide what to do, and in the end it’s the borrower’s decision to “lock” or “float” when it comes to mortgage rates. Ask your lender for advice and make the most informed choice you can.
Do you have questions about FHA mortgage loans or refinance 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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