February 15, 2016
Mortgage loan interest rates took a major dip last week, hitting best-execution lows of 3.5% at the height of the week’s improvements. But on Friday a “bounce” happened, pulling things back a bit. Some industry professionals feel it’s possible this move higher could be a correction or trend to come after the unusual week of lows we’ve seen, but it’s too early to tell.
30-year fixed rate conventional mortgage loans wound up at a best-execution 3.625%, which ends the week in territory that is still quite good. Some may regret if they missed out on the 3.5% best execution rate that appeared briefly last week, but these rates are still in a place we haven’t seen in a long time–some sources say these rates are reminiscent of the record lows seen in 2012.
FHA mortgage loan rates did not move from their best-execution comfort zone this week in spite of the trends lower. It’s unusual for FHA and conventional rates to match however briefly, but FHA mortgage loan interest rates do tend to vary more among participating lenders so it’s entirely possible that your experience last week may have varied more than usual.
Best execution mortgage loan interest rates are offered to the most extremely well-qualified borrowers, so your access to the rates we are talking about here depends greatly on your FICO scores, loan repayment history and other financial qualifications. These rates are not available to all borrowers or from all lenders. Where FHA mortgage rates are concerned, your access to a participating lender willing to offer best execution rates will also play a role.
Next week there is plenty that could influence mortgage rates one way or the other including Friday’s Consumer Price Index report. Fed meeting minutes are due on Thursday, and there are other scheduled economic data releases through the week that could all, depending on investor response to that information, affect mortgage loan rates.
It’s going to be tough for those on the fence about locking or floating to call on their own–best to get some expert advice before choosing to float given the current rate climate.
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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