November 10, 2015
Monday say mortgage loan rates move higher for yet another day in a row, putting rates at their highest best-execution numbers since mid-summer. Much of the upward trend at present is blamed on Fed discussions of an interest rate hike, and it seems likely (at least according to our sources) that a December rate increase could be on the table.
Any talk of rising rates at this point or indications that the Fed might be inclined to raise them could put more upward pressure on mortgage loan rates due to investor reaction to such news or indicators. Some of those indicators don’t come from the Fed directly, but from economic data releases the Fed is likely to take into consideration when it comes to the overall health of the economy and whether it can withstand a rate hike.
So for Monday, 30-year fixed rate conventional mortgages were reported, best execution, between 4.0% and 4.125%. Today’s upward move would be reflected in closing costs for many borrowers depending on the lender. FHA mortgage rates are holding, for now, at 4.75% best execution. The rates you see here assume ideal conditions–your FICO scores, loan repayment history and other financial qualifications will play an important role in determining your access to these rates.
Industry pro advice is mixed when it comes to locking or floating, but all agree that floating (never risk-free) carries an elevated risk at the moment. Wednesday is a holiday (Veteran’s Day) and it’s possible rates could move sideways tomorrow ahead of that; but breaking news or other factors could still conspire to push rates depending on circumstances.
If you are undecided about locking in an interest rate commitment with your lender, or floating and hoping for a change in the rate environment, now would be a very good time to ask for some expert advice before deciding one way or the other–it’s a tricky rate environment at present, and even at the best of times it’s not safe to assume that today’s conditions will remain tomorrow.
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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