Articles Tagged With: Interest Rate Trends

April 4, 2024

Home Loan Interest Rates To Fall In Spring?

In the end-of-year predictions leading up to 2024, there was talk about a housing market recovery. And there was further talk that such a recovery might happen in Spring 2024. Now, some have revised their predictions. Those revisions are based in part on the housing market recovery’s progress to date. But there is also discussion about what the Fed might do about interest rates in the Spring and Summer of 2024. Will Mortgage Rates Change In Spring 2024? Many anticipate the Fed cutting interest rates in late spring or early summer. But those cuts are not directly applied to mortgage rates. So, what is the Fed talking about doing here? The act of adjusting the rate for lenders who loan money to the public. Lower rates for the lender can | more...

November 6, 2023

Mortgage Interest Rate Trends In Late 2023

By Joe Wallace

In the last quarter of 2023, the Fed paused its interest rate hike campaign. First-time home buyers sometimes ask whether that means a pause on changes to FHA home loan interest rates. The short answer is no, and we’ll explain why below. Fed Rate Hikes Versus Home Loan Interest Rates The first thing to know? The Fed does not directly control mortgage rates but its actions do affect them less directly. Fed actions to increase rates are aimed at the lender side of the operation; when it pauses rate hikes, the Fed is putting increases on hold that affect how much it costs a lender to loan you money. The lender’s increased costs are passed on to the consumer through higher mortgage rates. What It Means When The Fed Pauses | more...

August 18, 2020

Mortgage Rates Give And Take In Mid-August

By Joe Wallace

Mortgage loan interest rates have had some interesting ups and downs in August 2020, with conventional loans AND FHA mortgages staying below the three percent line, at least some of the time in the case of conventional loans. There are many factors that affect the fluctuations of FHA and conventional mortgage loan interest rates–we won’t go into all of them here. But the pandemic, politics, international trade issues, and investor reaction to all of these things and more have kept mortgage rates at unprecedented lows (no, we aren’t tired of writing that phrase just yet). But at the time of this writing on August 18, 2020, conventional rates have risen above the three percent line once more. Rates are reported at a best execution 3.12% for the most well-qualified borrowers. | more...

July 1, 2020

Home Loan Interest Rates Hit Historic Lows Again.

By Joe Wallace

The end of the month of June, 2020 saw mortgage loan interest rates hit another historic low–rates hit another all-time low for the fourth time in a single month. As coronavirus issues continue to affect the global economy, economic factors at home and abroad have contributed to an environment favorable for lower rates. FHA Mortgage Loan Interest Rates In June 2020 FHA mortgage rates were listed at 2.50% on the last day of June. Not all borrowers are offered rates this low–your experience will vary depending on FICO scores and credit history. Finance and banking experts have been discussing the idea that as long as coronavirus has a role in what happens to the U.S. economy, we have the potential for continued low mortgage rates. Unfortunately, there is also volatility | more...

June 23, 2020

Mortgage Rates Hovering Near Historic Lows

By Bruce Reichstein

Mortgage loan interest rates have been holding steady near all-time lows. FHA mortgage loans (on fixed-rate 30 year mortgages) were reported at a best-execution 2.50% on Monday June 23, 2020 and talk persists that these low numbers could be with us longer than expected unless there are market forces that run counter to the current downward trend. Some marketwatchers point out that current low rates can be blamed at least in part on coronavirus concerns, but the reverse is not necessarily true if the crisis begins to abate without a feared second wave of infections. Investors and markets may not react in equal measure to the good economic news as they did to bad economic developments. What’s bad for the economy is often good for mortgage loan rates, and that’s | more...

June 11, 2020

Fed Announces Bond Policy Influencing Mortgage Loan Interest Rates

By Joe Wallace

In the second week of June, the Fed announced important policies that influence mortgage rates. FederalReserve.gov published a statement announcing monetary policy from the Federal Open Market Committee including: The Board of Governors of the Federal Reserve System voted unanimously to maintain the interest rate paid on required and excess reserve balances at 0.10 percent, effective June 11, 2020. As part of its policy decision, the Federal Open Market Committee voted to authorize and direct the Open Market Desk at the Federal Reserve Bank of New York to run “open market operations as necessary to maintain the federal funds rate in a target range of 0 to 1/4 percent”; The vote also authorized an “Increase the System Open Market Account holdings of Treasury securities, agency mortgage-backed securities (MBS), and agency | more...

June 10, 2020

Why FHA Loan Interest Rates Are Lower

By Joe Wallace

Have you ever started to research home loans and found yourself getting confused at all the data presented to you? What is the difference between a 30-year fixed rate conventional home loan and a 30-year fixed rate FHA mortgage? How do you know which loan to choose? Buying a home is one of the biggest commitments you can make financially as an ordinary, non-business borrower. The down payment alone makes some borrowers worry they can’t afford the loan (fortunately there may be local down payment assistance programs in your area that can help) or that they won’t be able to understand the intricacies of a mortgage. But buying a home involves a lot more common sense than you might realize. One area this is true for is interest rates–once you | more...

March 3, 2020

Mortgage Rate Trends: Historic Lows In Early March

By Joe Wallace

There are times when mortgage rates are low due to any number of factors. And then there are situations where rates fall so low that even people in the mortgage industry start reviewing their refinance options. Now is one of those times with mortgage rates for FHA and VA loans falling below the three percent threshold into the high two percent range. FHA loan and refinance loan rates, at these numbers, promise a more affordable home loan and they provide the most benefit for those who plan to keep their home for a long time and pay a significant portion of the mortgage (if not the whole thing). Those who want to buy and sell quickly won’t reap the same long-term financial benefits as those who buy and keep the | more...

February 28, 2020

Mortgage Rate Trends: Eight Year Lows

By Joe Wallace

With mortgage loan interest rates at eight-year lows, coronavirus fears, and a lot of market watching in the second month of 2020, it seemed like a good idea to resume a feature we had posted here for a good long while; a regular look at mortgage loan interest rate trends. And those trends are well worth watching at the moment; FHA and VA mortgage loan rates are advertised (at the time of this writing) at a best-execution 3.0%. You read that correctly, some FHA lenders are reporting mortgage loan rates at a flat three percent. That requires some caveats; not all lenders offer that rate, not all borrowers qualify for that rate, and not all lenders adjust their mortgage loan interest rates in the same way, the same amount, or | more...

February 26, 2020

FHA Loan Interest Rates: How Low Can They Go?

By Bruce Reichstein

In the first eight weeks of 2020 we have seen home loan interest rates plunge to eight-year lows. Mortgage rates for FHA home loans have sunk to 3.25%, due in part to the latest developments in the coronavirus which saw investors putting more money into safe-haven investments. That’s behavior that affects mortgage loan interest rates. The headlines themselves have no effect but investor reaction to those headlines makes quite a bit of difference. And many are inspired to look at their purchase loan or refinance loan options when the rates are advertised as low as 3.25%. When you read financial websites, you’ll find plenty of disclaimers associated with how the latest interest rates are displayed. Some consumers want to know what the phrases “top tier scenarios” and/or “best execution” have | more...