July 8, 2015
Mortgage loan rates are as low as they’ve been in about a month; economic headlines from Greece and China are contributing to that move lower, but as some market watchers are quick to point out, it’s important to beware such influence since there’s just as much potential for rates to begin moving higher again if it turns out that these economic conditions–which are currently encouraging investors to behave in ways that currently favor lower rates–aren’t as dire as they seem to be now.
We’re still seeing reports of 30-year fixed rate conventional loans at a best execution range between 4.0% and 4.125%, but more lenders are reporting best execution rates at 4.0% than in previous days. FHA mortgage loan rates are also still in their recent range between 3.75% and 4.0% best execution. If rates continue to move decisively lower, we could see FHA rates fall back into solidly 3.75% territory once more.
Best execution rates are not available to all borrowers or from all lenders–your experience may vary depending on your FICO scores, credit history, and the availability of a participating lender.
It’s a time of increased volatility for mortgage rates–economic news from overseas could shift the previously seen upward momentum, but likely only if that economic news continues to be bad.
What’s bad for the economy is often good for mortgage loan rates, and overseas news like the Greek debt crisis and now the China stock market plunge have global repercussions, so it’s not surprising that rates are making a recovery based on what has been reported in the last 48 hours.
What isn’t certain is how long the downward momentum may last or if it will last at all. Now is, according to some industry pros, a good time to lock in mortgage loan rates unless you have more tolerance for elevated risk. Keep watching the world economic headlines this week–they will play an important part in the grand scheme of things, at least in the short term.
Do you have questions about FHA loans? Ask us in the comments section.
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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