June 6, 2017
Since our last report, we’ve seen mortgage rate trends push rates to lows we haven’t seen since the Christmas holiday season but the start of the new week has seen those rates creep slightly higher.
Even with the minor upward movement, gone are the previously reported ranges of rates, replaced by single-digit best execution numbers some industry pros are urging borrowers to take full advantage of in situations where locking/floating is being considered.
30-year fixed rate conventional mortgages are reported, at the time of this writing, at the very bottom of the four percent range best execution. That means an extremely well-qualified conventional borrower could find rates as low as 4.0%. FHA mortgage loan rates are still below the four percent threshold, coming in at a best execution 3.75%.
Best execution rates assume ideal conditions such as a well-qualified borrower. Your ability to access mortgage rate numbers like the ones reported here depends greatly on the lender, your FICO scores, loan repayment history and other financial qualifications. Your experience may vary. The rates seen here are not offered by all lenders, and are not available to all borrowers.
Current political questions at home (including the testimony of former FBI head James Comey later this week) are contributing to the potential for volatility in rates this week.
It may surprise some that political issues that seem to have nothing at all to do with buying or selling real estate might affect rates. However, depending on the issue this is not unusual as world events (including purely political ones) can and often do send investors scrambling for the safety of less risky investments.
When that happens, mortgage rate trends are often affected, so if you are on the fence about entering into a mortgage rate lock commitment with your lender this week, ask the lender for some advice and make the most informed choice you can. An informed buyer is always far happier with the results of the purchase.
Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.
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