February 4, 2015
FHA mortgage loan interest rates have been holding at best execution levels of 3.25% for quite some time, and that’s despite ups and downs for 30-year fixed rate conventional mortgages. Late last week we saw rates for 30-year fixed rate conventional mortgages head, best executionwise, close to 3.5% for the most qualified borrowers.
Overseas financial developments have helped keep rates as low as they’ve been–it’s a good idea to pay attention to the situation in Greece and news of the European Central Bank. These are factors that can affect rates in the short term depending on investor reaction to breaking news.
On Monday of this week, those rates held steady more or less in spite of some lenders repricing higher, and on Tuesday it looked like the reversal of a downward trend (at least for that day) with rates moving higher, faster than they have in some time. Even so, for 30-year fixed rate conventional mortgages these best execution rates are quite low.
FHA mortgage loan rates, best execution, are lower than their conventional counterparts and the comfort zone they have been in will likely persist until there is sustained upward movement in rates or dramatic shorter-term movement. FHA rates do tend to vary more among lenders than fixed rate conventional mortgages, so your experience may vary.
The mortgage rates we’ve mentioned here are best execution rates and are not available to all borrowers or from all lenders. Your access to these rates depends on the availability of a participating lender, your FICO scores and other financial qualifications. Your experience may vary.
Do you have questions about FHA home loans? Ask us in the comments section. All 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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