July 18, 2015
Mortgage loan interest rates have been rising and falling in a volatile market; a combination of economic factors at home and headlines from overseas referring to the Greek crisis and China stock market woes have made for some unpredictable times where the rates are concerned. Some market watchers believe that we’ve seen the highest point rates might go to in the short term and that some kind of leveling off period is due.
But only time will tell; for now rates have been making very small improvements that are approaching the lowest levels for the entire month. 30-year fixed rate conventional loans have moved out of a best execution range with 4.25% at the upper end. 4.125% is now the most common best execution rate according to our sources. FHA mortgage rates have so far been unmoved, best execution, from the range of rates previously reported. Borrowers may find best execution FHA loan rates between 3.75% and 4.0% depending on the lender. It may take some time for FHA mortgage loan rates to change, especially when the overall recovery day-to-day is small.
FHA rates tend to vary more among participating lenders than conventional mortgage rates, so shopping around for a lender is a very good idea. Remember that “best execution” refers to a situation where the borrower has ideal financial qualifications. Your experience may vary. Access to these best execution rates depends greatly on your FICO scores and other financial qualifications, plus the availability of a participating FHA lender.
The last time we discussed short term possibilities, many industry professionals were advising borrowers against floating in the short term. Now some are admitting that the “cautious float” might not be as risky as it was earlier in the week. Some believe that more improvements, however small, are still ahead in the short term. There are people who believe that while Greek debt crisis headlines may not be finished, the influence on American mortgage loan rates might be dwindling or done altogether. It may be less risky to float in the days ahead, short term, but remember that breaking news or other factors can easily influence mortgage loan rates one direction or the other.
Next week there are two important economic data releases related to housing–one on Wednesday, and one on Friday. That could, depending on how that data affects the markets that influence mortgage loan rates, make for a quiet week overall, but keep your eyes on the headlines for developments overseas that could still affect mortgage loan interest rates.
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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