September 21, 2015
FHA mortgage rates continued a move lower on Friday–a move that started on Thursday following the Fed announcement stating that there would not be a hike in interest rates for now.
The Friday momentum–if it carries into Monday–could result in rates dropping to a best execution 3.75% best execution for 30-year fixed rate conventional mortgages.
That would also likely mean a drop in the FHA best execution rates, too. Those rates have held out in their best execution comfort zone of 3.75% up to now, so we’ll be watching what rates do and where they stand at the end of the business day.
Industry professionals last week were advising borrowers to consider locking in a mortgage loan interest rate prior to Thursday’s Fed announcement, but now the advice is taking a different turn. Industry pros are saying there’s plenty of good reasons to lock now–rates have hit four month lows (best execution) in the wake of the Fed, but floating could bring some rewards if the current downward trend persists.
If you are undecided about locking or floating, the current potential for lower rates won’t make the choices any easier, but at least there is as much of a chance for things to move in favor of the borrower this week as there was for the opposite trend last week.
Keep in mind that the downward momentum, which is most welcome, could be thwarted by breaking news from elsewhere such as overseas economic headlines or other, non-Fed related domestic news such as economic data releases.
So there is a bit of wait-and-see, a bit of optimism, and some speculation that this week could potentially bring lower rates if conditions are right. Stay tuned, it’s going to be a very interesting week ahead.
Do you work in residential real estate? You should know about the free tool offered by FHA.com, designed especially for real estate websites–a widget that displays FHA loan limits for the counties serviced by those websites.
It’s simple 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.
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