September 12, 2015
Mortgage loan interest rates have been back and forth this week, but markets that directly affect the rates seem to be getting more “defensive” as we get closer to next Wednesday. That is when the Fed will make some kind of an announcement about interest rates and whether they will get hiked sooner instead of later.
30-year fixed rate conventional mortgage loans are holding, best execution, at or near 4.0%. FHA mortgage loan interest rates are also holding steady, best execution, at 3.75% though your mileage may vary depending on the lender.
As always, “best execution” refers to ideal circumstances with a borrower that has outstanding FICO scores and loan repayment history among other things. Your experience may vary. These rates are not available to all borrowers or from all lenders.
Much of what we see industry pros saying about floating or locking in to next week has the word “lock” in it, especially for decisions being made before Wednesday’s much-anticipated Fed announcement.
Those who are undecided about locking in a mortgage loan rate or floating into next week in hopes that rates will improve should know that the Fed announcement creates the potential for a great deal of volatility depending on how investors react to breaking news, other trends in the meantime, and the content of the Fed statement itself.
That volatility means increased risk for rates to increase, depending on investor behavior. Make the most informed choice you can going into next week, but know floating carries increased risk in the short term. Some have gone on the record saying yes, it is possible for rates to drop next week, but that isn’t anticipated by those particular market watchers. The choice is up to you.
Do you work in residential real estate? You should know about the free tool offered by FHA.com. It’s designed especially for real estate websites–a widget that displays FHA loan limits for the counties serviced by those websites.
It’s simple to spend a few seconds customizing the state, counties, and widget size for the tool; you can copy the code and paste it into your website with ease. Get yours today at http://www.fha.com/fha_loan_limits_widget
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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