June 8, 2016
After the recent upward pressure on mortgage loan rates in the wake of the Fed’s discussion of a possible rate hike, economic data releases have tempered that discussion and we’re seeing a short-term recovery of that lost ground.
How long rates continue to improve remains to be seen, but at the moment numbers are creeping back towards where they were before all the talk of another possible rate hike.
30-year fixed rate conventional mortgages are, for the most part, at a best execution 3.625%, though it has been reported that a few more competitive lenders are offering best execution rates closer to 3.5%.
That doesn’t appear to be a widespread movement, but if rates continue to improve, how long might it take before conventional rates begin to rival the current FHA mortgage loan rate best execution comfort zone?
FHA rates have been holding, best execution, between 3.25% and 3.5%. We saw conventional best execution rates dip into this range earlier this year, so it is not unheard of. FHA rates do tend to vary more among participating lenders, so that’s a factor to keep in mind while watching the current trends.
As always, the rates you see here are considered best execution rates, and are not available to all borrowers or from all lenders. Your experience may vary depending on your FICO scores and other financial qualifications.
Locking and floating is a question that can be tricky in an environment like this, and there is talk that economic developments in Europe could help U.S. mortgage loan interest rates in the short term. That is giving some market watchers the motivation to encourage floating, or holding off on a mortgage loan interest rate lock in the short term in hopes that rates continue lower.
But floating is never without risk, and all who choose to wait should evaluate how high rates might go before “pulling the trigger” so to speak and making the commitment with the lender. The choice is yours, but make the most informed decision you can.
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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