January 5, 2016
On Monday we reported that mortgage loan interest rates had moved slightly higher to close out 2015–rates for 30-year fixed rate conventional mortgages ended the year in a range between 4.125% and 4.25% (best execution) and 2015 rates for FHA mortgages closed out at a best execution 3.75%.
On the first day back from the New Year’s holiday, mortgage rates lost no time regaining some of that lost ground. Mortgage rates for 30-year fixed rate conventional home loans are now in a range between 4.0% and 4.25% (best execution).
FHA mortgage loan rates did not move out of their best execution comfort zone of 3.75%, though if there is sustained improvement we could see rates for FHA mortgages shift into a range rates with the current best execution rate at the top of the range.
This week there are some economic data releases scheduled that could affect which way rates might move in the short term. The Fed releases its notes from the December meeting and we have an Employment report due out on Friday that could also push rates one direction or the other depending on investor reaction to that data.
What do market watchers say about locking or floating? The Employment report on Friday is being viewed as a potential spoiler for rates–we just don’t know what reactions will be to that report.
Will investors shrug off the data (good or bad) in favor of other breaking news stories? If there is nothing to distract investors from paying more close attention to the employment numbers, could undue attention affect mortgage rates if there are knee-jerk reactions to the report?
All of these things can and have happened, so it’s for the best to seriously consider industry pro advice about discussing a mortgage rate lock with your lender if your closing date is soon, or if your “risk tolerance” for a potential rise in interest rates on mortgage loans is low. We’ll keep an eye on rates this week to see what is trending early in the new year.
Do you work in residential real estate? You should know about the free tool offered by FHA.com. It is designed especially for real estate websites; a widget that displays FHA loan limits for the counties serviced by those sites. It is 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:
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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