April 16, 2015
On April 9, 2015, mortgage rates moved higher than they had been all month–not saying much since the month was only nine days old, to be sure. But since that time, rates have improved. There have been some ups and downs (yesterday mortgage rates experienced some weakness depending on the lender, but overall in the last four business days we’ve seen improvements.) but overall we’re still seeing rates holding at or near levels we reported last time.
30-year fixed rate conventional mortgages have been, at the time of this writing, at or near 3.625% (best execution), but in a range that tops out at 3.75% (again, best execution and depending on the lender). FHA mortgage loan rates are holding in a comfort zone between 3.25% and 3.5% best execution. Until rates begin seeing more pressure up or down, it’s likely that FHA mortgage loan rates will remain in that best execution range (more on that in a moment).
When we use the term, “best execution”, we’re referring to the fact that the best mortgage loan interest rates (as mentioned above) are available to the most financially qualified borrowers with outstanding FICO scores and credit histories. Best execution rates are not available to all borrowers or from all lenders; your experience may vary.
FHA mortgage rates tend to vary more among lenders than conventional rates. It’s in your best interest to shop around for the best rates and terms on your FHA mortgage loan.
What’s ahead for FHA loan rates?
A series of small moves up or down over several days, or a significant one-day shift could push FHA mortgage loan rates out of the current range, but only time will tell if that’s in the cards for this week or early next week. We had a Retail Sales report that affected rate trends this week, and some market weakness that also influenced rates in a way that sent some market watchers to urge borrowers to get interest rate locks rather than “floating” in the short term hoping for a more competitive mortgage loan interest rate. Some industry professionals believe locking is the most sound strategy for now based on current trends. Will that advice be relevant next week? We’ll take a look and report on the trends from tomorrow (Thursday April 17) on in our next report.
Do you have questions about FHA home loans? Ask us in the comments section. All comments are reviewed prior to appearing 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.
Browse by Date: