October 26, 2015
On Thursday, mortgage loan rates went to lows we haven’t seen in several months, but Friday brought with it slightly higher rates. Even so, best execution rates for 30-year fixed rate mortgages is still being reported in a range between 3.75% and 3.875.
FHA mortgage rates are being reported, best execution, at their previously mentioned 3.5%. These “best execution” rates are not available to all borrowers or from all lenders. Your access to these rates depends on your FICO scores, loan payment history and other financial qualifications. Your experience may vary.
The end of the week saw some market volatility, and there are questions going into the new week about the Fed and global economic issues. Many industry professionals are using the word “lock” when discussion mortgage rate commitments–some believe holding off on a commitment to a mortgage rate agreement with a lender in the short term (known as “floating”) could be riskier at the moment than it has been in weeks past.
Floating and locking are choices the borrower should make with an informed opinion–it’s best to ask advice of your lender before choosing to float. Floating is never risk-free, but some situations may carry a reduced amount of risk.
Some industry pros feel that rates are good enough now that locking is a good idea–especially in light of the volatility possible at present. Floating may or may not pay off in the short term, but only the borrower can make that call.
Some feel there is equal potential for rates to move higher or lower, so if you are within 15-30 days of loan closing and still don’t have a rate lock, that’s something to ponder.
Do you work in residential real estate? You should know about the free tool offered by FHA.com, designed especially for real estate websites. It’s a widget that displays FHA loan limits for the counties serviced by those websites.
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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