December 21, 2015
On Friday mortgage rates crept lower, something more than one market watcher has commented on as being a bit contradictory when you think about the idea that the Fed is raising interest rates and that the anticipation of that happening brought a lot of volatility to the markets.
Investor reaction to the Fed rate hike announcement was a big “X-factor” last week in terms of which way rates could have gone after that announcement. As we’ve seen, the hike news turned out not to be a big spoiler for mortgage loan interest rates.
Rates moved lower but you may notice the changes in the form of lower closing costs instead of actual alterations in the rates. 30-year fixed rate conventional mortgage loans on Friday were still begin reported, best execution, in a range between 4.0% and 4.125%, and FHA mortgage rates are still in the 3.75% best execution comfort zone at the time of this writing.
Best execution rates are not available to all borrowers or from all lenders. Your FICO scores and other financial qualifications will determine your access to mortgage rates like the ones you see reported here and your experience may vary. The availability of a participating lender willing to offer these rates to qualified borrowers may also be a factor.
Right now, as we stare a very short week in the face, rates are bound to be a bit more conservative in movement as we brace for the holidays. Markets close earlier than normal so that can also affect the rate environment.
Some industry pros are saying that now is a fine time to get a mortgage rate lock with a lender and that right now the risks and rewards associated with floating are lower overall.
Floating is never completely risk-free so if you are happy with the rates currently being offered to you, locking may not be a bad choice based on the discussions we’re reading in the marketplace. However in the end, it’s up to you to make the most informed choice possible about whether to lock or float.
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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