May 22, 2017
Since our last report, mortgage rate trends have been in the “higher” category. That’s due at least in part, according to our sources, to local political drama which has sent investors moving for safer havens.
Those moves often reflect badly on rates, and those hoping for a chance to squeeze more recovery out of current trends likely weren’t counting on breaking news about possible impeachment proceedings over FBI director James Comey and questions of Russian involvement in U.S. politics to influence mortgage rates. But they have, however indirectly.
At the time of this writing, 30-year fixed rate conventional mortgage rate numbers have taken an upward turn to 4.0%, best execution. That’s out of a previous range of rates, with 4.0% being the bottom end of the range. FHA mortgage loan rates have also moved out of a range of rates and squarely into 3.75% territory, best execution.
FHA rates previously occupied a range with 3.5% at the bottom end, but as upward mortgage rate pressure continues, it may be worth considering that FHA best execution rates are still in a sub-four percent zone, though how long that continues remains to be seen.
Best execution rates assume ideal conditions including a well-qualified borrower and a participating lender willing to offer those rates. The mortgage rate numbers listed here are not available to all borrowers or from all lenders. Your FICO scores and other financial qualifications will play a large part in determining your access to rates like these.
Some industry professionals still feel there may be room for improvement in the short term, but others feel that the current potential for volatility makes locking a safer bet. Floating, or holding off on a mortgage rate commitment with the lender in hopes that rates may move lower, is never without risk. Right now, those risks are elevated due to the uncertainty in Washington and other factors.
Discuss your lock/float concerns with your loan officer before committing to a float strategy-it never hurts to get some sound advice from a professional and you’ll make the most informed choice possible.
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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