March 18, 2015
On Wednesday mortgage loan rates in general saw a significant drop in the wake of a highly anticipated Fed announcement, which included words some have taken to mean there will be no interest rate increase in the month of April.
Some sources are labeling today’s downward move as “the best day of 2015” based on that drop; 30-year fixed rate conventional loan best execution rates are for some extremely well-qualified borrowers coming in at 3.75%, best execution. Borrowers who “floated” into the Fed announcement today were, by all accounts, given a good payoff.
That said, those who floated are now being encouraged by many industry professionals to lock, as there is no guarantee that today’s sharp improvement in best execution rates will continue tomorrow or the next day. The lenders who did not reprice for the better today could do so tomorrow to reflect the improvements seen today, so don’t be surprised if the best execution rate quoted above persists unless breaking news or other factors work together to put upward pressure on mortgage loan rates.
FHA mortgage loan interest rates were reported at 3.5% best execution today, but if improvement persists in the next day or two could we see a move into a new range of best execution interest rates for FHA loans with 3.5% being the upper end of that range? Keep your eyes on the headlines and the rate reports over the next few days–time will tell.
It’s important to reiterate that best execution rates such as those reported here are not available from all lenders or to all borrowers. Best execution rates are accessible based on your credit report, FICO scores and other financial qualifications. Additionally, FHA mortgage loan interest rates are more competitive than conventional rates, and you will notice more variation among lenders for FHA rates than for conventional loans.
Do you have questions about FHA loans? Ask us in the comments section. All comments/questions are reviewed before they can appear on the site.
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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