September 18, 2015
The much anticipated Fed announcement came and went, and when rates were not raised, mortgage loan interest rates made a good recovery from the previous sideways-to-upward movement they were making. While Fed policy discussed yesterday does not directly dictate the rates offered by mortgage lenders, there is a definite influence there, and investor reaction to Fed policy also plays a role in pressuring rates higher or lower.
So yesterday’s “no rate hike for now” announcement came as a welcome move, and by the end of the day we saw best execution rates for 30-year fixed rate conventional mortgages back in a range between 3.875% and 4.0%. That puts those numbers back in territory we haven’t seen since last week, but as many sources report, we’re still watching mortgage loan rates in general move within a specific range, so no new ground has been broken here.
FHA rates remain in the 3.75% comfort zone. As we always mention, you will find more variation among participating lenders so it is a good idea to shop around for the best rates.
Best execution rates refer to situations where applicants have ideal financial qualifications including FICO scores and other financial history. Your experience may vary. The numbers you see reported here are not available from all lenders or to all borrowers.
Some industry professionals are looking at the next few business days in the short term in hopes that rates might benefit more from the news we’ve discussed here. Keep your eyes on the headlines on Monday and Tuesday–could we see more sub-four percent rate activity in the days to come?
Do you work in residential real estate? You should know about the free tool offered by FHA.com . It’s designed especially for real estate websites–a widget that displays FHA loan limits for the counties serviced by those websites.
It’s 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 at 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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