June 25, 2015
After small-but-steady improvement recently, rates opened the week with a jump higher that wiped out the previous improvements, and by Wednesday mortgage loan rates have been wavering back and forth, more or less holding the same position when all is said and done. 30-year fixed rate conventional mortgages are up for 4.125% best execution, and we’re still seeing FHA mortgage loan rates holding a best execution comfort zone of 3.75%.
As we always point out, best execution rates are offered to those applicants with the most ideal financial qualifications. Your own experience will depend greatly on FICO scores, your credit history and other factors. FHA mortgage loan rates can vary more among participating lenders than their 30-year fixed rate conventional counterparts.
FHA rates have been in the 3.75% best execution comfort zone for some time, but if there is significant added upward movement to mortgage rates in general, we may see FHA rates break into a range of numbers with the current rate on the low end. That’s based on past observation of FHA rates, but that is no guarantee of future results.
What’s ahead for FHA mortgage rates? The Greek debt crisis is still generating headlines which may or may not affect rates here, and the overall rate environment is fairly volatile by all accounts. There seems to be a trend among the advice of industry professionals–locking your rates rather than floating in hopes of a better deal seems to be the advice du jour. We are in a phase now where market watchers are not shy about saying the words “upward trend”…
Thursday market results aren’t in at the time of this writing and we still have Friday to get through, but next week could be another sideways one ahead of the holiday weekend unless headlines or investor activity influences things otherwise. It’s best to keep an eye on European economic headlines and ask a lot of advice if you are considering “floating” in the short term.
Next week may not be the best one if you’re hoping for dramatic improvement, but those who can afford the risk may be tempted to see which way the wind blows come Monday afternoon in spite of the advice from those who have seen this behavior before. The choice is up to you, but make the most informed “float” or “lock” decision you can.
Do you have questions about FHA home 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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