January 3, 2017
Mortgage rate activity in the last days of 2016 might have, to some, started to look like a recovery trend, but it’s not safe to declare that just yet in spite of some overall downward movement at the very end of last year. The new year has plenty of early potential for volatility depending on a variety of factors, not the least of which involve a new White House administration.
Last week rates closed on the final trading day of the year (for America) with rates moving low enough to push 30-year fixed rate conventional mortgages into a best execution range with 4.125% at the bottom and 4.375% at the upper end. That’s as close as rates got to breaking through the 4.0 zone and into the high three percent range after the general upward swing at or near election time.
FHA mortgage rates are holding steady at the time of this writing at 4.0%, best execution. FHA rates tend to find a comfort zone and stay in it if conditions permit, but that said, FHA rates do tend to vary more among participating lenders, so you’ll be well-served by shopping around for the most competitive rate.
As always, the rates you see here are best-execution, which assume an ideal borrower. Best execution rates are not available to all borrowers or from all lenders. Your FICO scores, loan repayment history and other financial qualifications will determine your access to interest rates like the ones listed here. Your experience may vary.
Rates have been in “holiday mode” where there is little significant change overall (unless there is specific motivation such as unexpected breaking news, economic data or other factors that could push rates in the short term) so it’s highly likely that we’ll see some form of movement in the new year, but it’s not safe to begin declaring trends, so “wait and see” is still good advice for those trying to figure out which way mortgage loan interest rates might be headed.
If you aren’t sure whether to lock or float in the current mortgage rate environment, it’s best to have a discussion with your loan officer about recent rate behavior and the possibility for more volatility ahead as we approach January 20th, Inauguration Day.
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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