November 17, 2015
Monday was the fourth day that mortgage loan rates didn’t move higher–and after six solid days previously of upward movement, that’s a welcome development.
We’re seeing what appears to be a cautious, gradual move lower after that sustained upward pressure. How long that move lower might continue isn’t clear, but we are seeing rates move rather than simply maintain the previous day’s position.
30-year fixed rate conventional mortgage loans are closer to 4.0% (best execution) than they have been in many days. Some lenders may still be offering best execution rates closer to 4.125%, but if the downward trend persists we may see many more lenders headed towards the rock bottom end of the four percent range.
FHA mortgage loan rates are still at 3.75%, best execution. You may see more variation among FHA rates than with conventional lenders, and best execution rates assume ideal conditions. That includes excellent FICO scores and loan repayment history as well as other financial qualifications. These rates are not available from all lenders or to all borrowers; your experience may vary.
Industry pros are using the word “float” more, but some add that you should only consider delaying a mortgage rate lock with your lender if you are near your closing date if your “risk tolerance” is higher.
Floating is never without a degree of risk and rates could move upward once more if there is breaking news, or if investor reaction to the Wednesday scheduled release of Fed minutes puts upward pressure on mortgage loan rates.
Locking or floating is the borrower’s choice–make the most informed decision you can and ask plenty of questions of your lender before deciding to float this week.
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.
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