August 21, 2015
Mortgage loan rates have been in a back-and-forth mode this week. One day they rise, altering closing costs for the most part rather than the actual best execution rate, the next day they fall, with the same result. On Wednesday all eyes were on the release of Fed minutes, which detail the meeting held last month.
The details of that report sent investors into activity that benefits mortgage rates, and while the best execution numbers we reported in our last blog post haven’t changed, some borrowers may notice the alterations in the form of lower closing costs as previously mentioned.
30-year fixed rate conventional mortgages were reported at 4.0% best execution at mid-week, with some lenders coming in at sub-four percent best execution rates. Best execution rates are not available to all borrowers or from all lenders–your experience may vary based on your FICO scores and other financial qualifications.
It’s speculated that if improvement keeps coming it won’t be long before 30-year fixed conventional rates dip below 4.0 on a wider basis. FHA mortgage rates are holding in the 3.75% best execution comfort zone for now, though a period of sustained improvement could send FHA rates into a range with the current 3.75% at the high end. Only time will tell whether conditions are right for that to happen in the short term.
More industry pros advised floating in the middle of the week after the Fed minutes were released–there seemed to be a general feeling among some that the gains seen on Wednesday aren’t all there are to be had.
But from then to the time you read this conditions may have changed, so it’s best to ask the advice of your lender before committing to a lock or float. Remember, floating is never without a degree of risk and it’s best to make the most informed choice you can. We’ll take a look at the whole week’s trends on Saturday to see where things went from here.
Do you work in residential real estate? You should know about the free tool offered by FHA.com. It’s designed especially for real estate websites–a widget that displays FHA loan limits for the counties serviced by those websites.
It is easy to spend a few seconds customizing the state, counties, and widget size for the tool; you can copy the code and paste it into your website with ease. Get yours today: http://www.fha.com/fha_loan_limits_widget
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.
Browse by Date: