September 6, 2016
Ahead of the holiday weekend, all eyes were on Friday’s employment stats, which can and have acted as a spoiler for mortgage loan interest rates in the past depending on investor reaction to the contents of such reports.
Market watchers reported weaker-than-expected numbers in that report, and ahead of a holiday weekend we saw some lenders keeping rates the same, while others had slightly higher numbers to close out the week.
30-year fixed rate conventional mortgages were reported at or near a best execution range between 3.375% and 3.5%. Friday’s increases with some lenders were likely reflected in closing costs rather than actual higher rates. FHA mortgage loan rates continue holding fast in their best execution range between 3.0% and 3.5%.
The numbers we’ve been seeing are reported by industry pros and market watchers as being within a narrow range. While we have seen upward pressure on rates depending on the day, the conditions, and the investor reaction to various market forces, we are still looking at rates that are considered low, especially if you look at rates compared with those available this week a year or two prior. So the higher numbers from some lenders are still within a reasonably low set of offerings for now.
As always, the numbers we are discussing here are reported as “best execution” rates, which assume an ideal borrower with outstanding FICO scores, loan repayment history and other financial qualifications.
Your experience may vary depending on the availability of a participating lender and other factors. The rates seen here are not available to all borrowers or from all lenders.
The end of the three-day weekend means it’s time for a shorter week full of scheduled economic data releases, some of which have been more influential on rates (depending on investor reaction to those reports) than others.
The “JOLTS” report, also known as Job Openings and Labor Turnover Survey, comes out on Wednesday, and Jobless Claims data is due out on Thursday. Will these reports push rates in one direction or another? Time and investor reaction will tell, but it promises to be an interesting week for rates.
Those who have applied for an FHA mortgage loan but have not made an interest rate lock commitment with the lender yet may need to have a conversation with their lender this week before choosing to lock or float ahead of these reports.
Floating-holding off on a mortgage loan interest rate lock agreement with the lender-is never without risk, but ahead of certain scheduled economic data releases the risk can be elevated. Get some good advice this week if you are getting close to your closing date and haven’t make the commitment yet.
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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