February 10, 2016
Normally we don’t post on a near-daily basis about mortgage rate trends, but this week is different as we’re seeing rates moving lower than they have been in quite some time, and it’s unclear how long this trend could last. So we’re paying more attention to this situation until things settle down….
Mortgage rates moved even lower on Tuesday, putting many conventional mortgage best execution rates into the mid-three percent range. At the time of this writing, our sources believe that this is a short-term shift due to economic forces, pending statements from the Fed, and market activity.
How long the downward movement continues remains to be seen, but some market watchers point out that when the headlines about the Fed start coming out over the next two days, it could result in a shift higher for rates depending on investor reaction to the information. Borrowers who are hoping rates might slide even lower should take that into consideration when planning a lock or float decision–you might not get much warning if the headlines and reaction to them starts pushing rates higher once more.
At the time of this writing, 30-year fixed rate conventional mortgages were being listed at lows at a best-execution 3.625%, out of the previous range between that and 3.75%. FHA mortgage rates remain in their 3.5% comfort zone for now, best execution, but more improvement could push that rate into a range with 3.5% at the high end.
Remember, best execution rates assume ideal conditions when it comes to borrower qualifications–your FICO scores, loan repayment history and other financial qualifications will play a large role in determining whether or not you are offered rates at or near the ones listed as “best execution”. Your experience may vary.
“Lock” is a word many professionals are using right now when it comes to deciding whether or not to commit to a rate. What we’re seeing now is likely a short term “rally” in the words of some industry professionals, and those wanting to get in at an ideal time should know the likelihood of these numbers persisting depends greatly on a number of variables. Any one of those could put upward pressure on mortgage rates, so choose carefully if you’re tempted to float into the next day or so.
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.
Browse by Date: