December 22, 2016
Since our last report on mortgage rate trends, we’ve seen a minor bit of improvement in interest rates, but the numbers still remain at highs not seen in the last couple of years. The improvements will likely be reflected in closing costs where applicable, and the range of rates is still at or near what it’s been in recent days.
That means that 30-year fixed rate conventional mortgages are holding in a range between 4.375% at the very bottom end and 4.5% at the top end, best execution. FHA mortgage rates are holding in a best execution comfort zone of 4.0%, though if upward movement resumes we could see this turn into a range of rates also.
Best execution rates assume ideal borrowers. Your FICO score, loan repayment history, and other financial qualifications will determine your access to interest rates at or near the ones listed here. The rates reported on this page are not available from all lenders or to all borrowers, your experience may vary.
The lock or float question is still fairly pragmatic; don’t gamble if you can’t afford to lose. The current rate environment has many industry pros advising borrowers to lock and don’t look back; the risk of higher rates is quite elevated for now and floating-holding off on making an interest rate lock commitment with your lender-is never without SOME degree of risk.
Holiday market activity has, in the past, kept things more or less status quo the closer the holiday weekend and New Year’s Eve get. That means that, based on past performance (which is NOT a reliable indicator of future behavior, but merely a yardstick to compare by) we could see rates hovering at or near current positions barring any breaking news or events that influence the markets.
That doesn’t make it safer to float, but some may interpret it that way regardless. If you aren’t sure which way you should be going in the current state of things with regard to a mortgage rate lock commitment, have a conversation with your loan officer. Some expert advice in this area will go a long way toward helping you decide the best course of action.
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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