February 18, 2015
In 2015, saying that mortgage rate performance is “bad” is a bit like saying a slice of cake is mostly delicious–that is to say that in spite of upward pressure on mortgage loan rates, we’re still looking at best execution rates below four percent, and overall that’s a very good thing.
30-year fixed rate conventional loans edged all the way down to a best execution potential of 3.5% for some of the most qualified borrowers, and FHA mortgage loan rates have up until only very recently persisted in a best execution comfort zone of3.25%.
Last week, going into a three-day holiday weekend we saw mortgage rates (best execution) struggling. Blame Friday the 13th, blame Greece and the EU situation, or simply refuse to look for a specific reason and concentrate on the fact that some market watchers believe floating this month carries more risk than it did last month; the bottom line remains the same.
Rates didn’t fare so well coming out of the holiday weekend but on Wednesday of this week, the Federal Open Market Committee released a report that had a calming effect on mortgage rates and it looks like the FOMC is less aggressive attitude on raising rates in the new year. That could continue to help rates but it’s far too early to tell what might happen in the short term.
FHA mortgage loan rates are at the time of this writing in an best execution range of rates between 3.25% and 3.5%. Readers take note, best execution rates are not available to all borrowers or from all lenders, and your financial qualifications play a big role in your access to such rates. Now is a very good time to explore your new purchase FHA loan or refinance loan options, especially if you’re concerned that rates could go higher over the short term.
Do you have questions about FHA loans? Ask us in the comments section. All questions and comments are held for review.
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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