March 11, 2015
Last Friday, a strong jobs report put a lot of pressure on mortgage loan rates in general, pushing 30-year fixed rate conventional loan interest rates out of the three percent zone and into 4.0% best execution territory. That’s a large step higher for rates that have managed to hang on to the mid to upper three percent range (best execution) for quite some time.
FHA mortgage loan rates, which can be slow to follow the changes in conventional loan rate moves depending on circumstances, also pushed into higher territory, hitting 3.75% for the first time in a long while.
This move higher is still better than some rates we’ve seen hit in the last two years but in recent memory this is as close to the 4.0% range as FHA mortgage rates had come. But the following week up to the time of this writing has brought FHA and conventional loans back down once more.
At the time of this writing, 30-year fixed rate conventional loan best execution rates have moved back into the high three percent zone and out of the four percent range, best execution. That means that the most well-qualified borrowers may have access to rates at or near 3.875% depending on the lender and financial qualifications.
FHA mortgage rates are back down to 3.5%, best execution. That rate is not available to all borrowers or from all lenders. AND, it should be pointed out that this week still has a highly anticipated data release in the form of a Retail Sales report that has the power to affect rates depending on investor reaction to that report.
So we see that there is potential for volatility, and industry professional advice on locking or floating is mixed. But suffice it to say that we haven’t seen the last of the ups and downs this week, borrowers should be careful making either decision without asking for some advice and paying close attention to the factors affecting mortgage rates like the Retail Sales report–borrowers who have loans closing in 15 days or less may feel more urgency to lock than those with the luxury of more time.
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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