September 8, 2016
Press conferences are not directly tied to mortgage loan rates, but depending on the contents of a particular press opportunity investor reaction to such things can and often does affect mortgage loan rates.
Over the summer, the European Central Bank (ECB) has had an influence on rates due to a variety of factors (and Brexit cannot be ignored in that respect), so with a press conference Thursday morning for ECB officials, it’s entirely possible that we could see investors react to the contents of that. Or not. At the time of this writing the press conference hasn’t happened yet-it is scheduled for 7:30 AM Central Daylight Time.
While that doesn’t sound terribly helpful, it is basically a fact of life with respect to mortgage loan rates. Sometimes these scheduled events are influential, sometimes they are inherently not, and sometimes they get overlooked due to breaking news from other sectors that causes investors to pay more attention elsewhere.
The bottom line is, for borrowers on the fence about locking or floating this week, Thursday is a tricky day indeed. Will the ECB press conference contain information that pushes rates one way or the other? It’s anyone’s guess but if you are wondering whether to lock or float, a conversation with your loan officer may be in order.
But at the moment, mortgage loan rates headed downward on Wednesday, putting 30-year fixed rate conventional mortgages in a new range with some sources reporting more aggressive lenders offering a best execution rate at or near 3.25%, with more in the 3.375% zone.
And there are other lenders still offering a best execution 3.5%, so we’re seeing a range of rates at the moment. It’s true that with these day-to-day trends many borrowers will notice the changes in the form of closing costs rather than actual interest rate numbers.
FHA mortgage loan rates are holding steady in a best-execution range between 3.0% and 3.25%. Once more this year we are seeing conventional loan rates flirting with territory the FHA rates tend to occupy, so it’s entirely possible that we could see changes to these best execution numbers in the week to come if there is sustained change in either direction. With that in mind, FHA loan interest rates tend to vary more among participating lenders, so it’s best to shop around for the most competitive rate available to you.
As always, best execution rates are not available to all borrowers or from all lenders; your ability to access the rates mentioned here depends greatly on your FICO scores and other financial qualifications. Your experience may vary.
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: