October 7, 2015
Monday saw mortgage loan rates moving higher, wiping out some of the gains seen on Friday. Tuesday rates were unchanged to slightly higher, depending on the lender.
30-year fixed rate conventional loans are, at the time of this writing on Wednesday morning, in a best-execution range between 3.75% and 3.875%. Higher closing costs are where some borrowers may notice the biggest difference in rates between Friday and today.
FHA mortgage rates are still being reported, best execution, at 3.5%, though if the upward trend continues it’s unclear how long until FHA mortgage rates break out of that single number and into a range of rates with 3.5% at the low end.
Remember, “best execution” refers to an ideal situation. The rates listed here are offered to potential borrowers with outstanding FICO scores and other financial qualifications. These rates are not available to all borrowers or from all lenders. Your experience may vary.
In spite of the higher movement, we’re still looking at mortgage loan interest rates that are as low as they’ve been since approximately six months ago. Industry professionals are somewhat mixed on locking or floating, so borrowers should make the most informed decision they can about committing to a mortgage rate lock in the short term.
Some industry pros say that floating is riskier at the moment, and it is true that floating is never without a degree of risk. At the moment, that risk may be elevated depending on a variety of factors including volatility in the markets that directly affect mortgage loan rates, breaking news that could also affect those rates, and scheduled economic data releases and investor reaction to them.
Do you work in residential real estate? You should know about the free tool offered by FHA.com–a free widget designed especially for real estate websites that displays FHA loan limits for the counties serviced by those sites.
It is quick and easy 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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