September 12, 2016
Mortgage rates turned up sharply on Friday after a press conference by the European Central Bank (ECB). There is speculation among market watchers that Friday could be the beginnings of an upward trend in rates, but the talk at the time of this writing is just that-speculation.
However, even though past performance does not guarantee future results (especially where markets are concerned) it may be wise to consider the advice of the market watcher for now-we simply can’t predict which way markets might swing next in a post-Brexit climate that includes both the Fed and ECB talking about the future of monetary policy with regards to interest rates, etc.
While it’s true that best execution rates for 30-year fixed rate conventional mortgages look the same on paper at the time of this writing that they did in our last report (a range between 3.375% and 3.5%), Friday’s move can be reflected in closing costs, which is where some borrowers may feel the increase if they had to lock rather than float.
FHA mortgage loan rates are holding in their best execution range between 3.0% and 3.25%. FHA rates tend to vary more among participating lenders, so the rates you see here may or may not be available in your market. It pays to shop around for the best rates available to you.
Best execution rates are not available to all borrowers-the rates you see reported here assume an ideal loan applicant with outstanding FICO scores, loan repayment history, etc. Your experience may vary, your financial qualifications will play a significant role in determining your access to rates similar to the ones listed here.
Market watchers are discussing Friday’s move higher in terms of being the single biggest potential “threat” to the current range of rates we’ve seen in quite some time, and if you are on the fence about locking (making a mortgage loan interest rate commitment with your lender) or floating (holding off on that commitment in hopes of lower rates to come) you may wish to have a conversation with your loan officer.
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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