October 3, 2016
Mortgage loan interest rates closed mixed on Friday, gaining back some ground after a couple of days of slightly higher movement. Overall, last week was a bit of a tug-of-war, but on Friday best execution rates are still reported at levels we’ve seen all week, with minor ups and downs likely being reflected in closing costs rather than actual rate changes depending on the lender.
30-year fixed rate conventional mortgages ended Friday at 3.375%, best execution. Market watchers noted on Friday that some lenders marked up, some marked down, and it’s likely that some also stayed the same from Thursday. Bond market activity is a player in the Friday numbers, but how that factors into the week ahead remains to be seen.
FHA mortgage loan fixed interest rates remain in a 3.25% comfort zone, and it could take a significant fluctuation to push them out of that zone at this point. Several days of sustained upward or downward movement could do it, or one big day depending on market conditions.
But having said that, it’s important to note that FHA mortgage loan interest rates do tend to vary more among participating lenders than conventional equivalents, so your experience will definitely vary.
The numbers you see here are quoted as best execution rates, and assume ideal conditions. An applicant’s FICO scores, loan repayment history, and other financial qualifications will determine the borrower’s access to these rates. They are not available to all borrowers or from all lenders. Your experience may vary.
The coming week has some scheduled economic data releases that could affect mortgage loan rates, including Friday’s important Employment Situation Report. Whatever decisions are made leading up to Friday, it may be best to get the advice of your loan officer before “floating” or holding off on a mortgage loan interest rate lock commitment going into that report.
The employment situation report does not directly affect mortgage rates, but investor reaction to that report can and has affected rates in the past (depending on circumstances). Get an informed opinion before floating into Friday-an informed borrower is happier with the decisions made in cases like these.
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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