Articles Tagged With: Interest Rate Trends

December 17, 2015

Mortgage Rate Trends: Fed Day, Interest Rate Hike

We have paid more attention to mortgage rate trends this week due to a major economic event scheduled for Wednesday that has big potential to affect mortgage loan rates both in the short term and over the long term. The Fed was scheduled to meet on Wednesday to make an announcement about the possibility of along-discussed December interest rate hike. And Wednesday was the day the Fed finally announced the increase is actually happening. It’s something they have been considering, reconsidering, and delaying for years. But how does this affect the average home loan applicant? In the past, mortgage loan rates have been adversely affected by talk of a Fed rate increase–the rates would jump in the short term based on investor reaction to news of a possible hike, indicators | more...

December 16, 2015

Mortgage Rate Trends: Higher On Tuesday In Anticipation Of “Fed Day”

By Joe Wallace

Tuesday saw mortgage loan rates move higher–more lenders are offering interest rates for 30-year fixed rate conventional mortgages at 4.125% or higher (best execution). Some are still offering sub-4.0% rates to extremely well-qualified borrowers according to our sources, but this varies depending on the lender. FHA mortgage loan rates are, best-execution, at 3.75% for now, but after “Fed Day” on Wednesday when the Fed will finally end the speculation as to whether or not a December interest rate hike is happening, we could see that change depending on investor reaction to Wednesday’s scheduled Fed event. As always, “best execution” assumes ideal credit qualifications for the applicant and much depends on the lender–these rates are not available to all borrowers or from all lenders. Your experience may vary. The Fed interest | more...

December 1, 2015

Mortgage Rate Trends: Flat After The Long Weekend

By Joe Wallace

Monday saw no significant activity for mortgage loan interest rates following the long weekend. Tuesday could be–barring any breaking news or unexpected investor activity–equally quiet in anticipation of very important economic data releases coming later in the week. Wednesday through Friday there is increased potential for volatility based on the contents of reports including employment statistics, jobless claims, and more. Depending on the contents of these reports–and any breaking news that may occur in the meantime domestic or international–there’s increased risk of upward movement on mortgage loan rates this week. Industry professionals seem to be using the word “lock” more, pointing out that the closer we get to these economic data releases, the higher the risk of floating, or delaying an interest rate lock commitment with the lender in hopes | more...

November 17, 2015

Mortgage Rate Trends: Slightly Lower On Monday

By Joe Wallace

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...

November 4, 2015

Mortgage Rate Trends: Moving Higher For A Second Day In A Row

By Joe Wallace

Last week, mortgage rates moved higher on Thursday, then leveled out and didn’t lose any more ground on Friday. But Monday and Tuesday we’ve seen the rates move to their highest numbers in four weeks or so, pushing best execution rates for 30-year fixed rate conventional mortgages farther away from that 3.75% zone we saw last month. 30-year fixed rate conventional mortgages have moved recently into a range between 3.875% and 4.0%; if upward pressure continues we could see 4.0% (best execution) become far more prevalent. At the time of this writing, FHA mortgage rates are still at their 3.5% best execution comfort zone but this time around that might not last as long as the previous FHA mortgage loan rate comfort zone–we’re likely to see rates break out into | more...

October 14, 2015

Mortgage Rate Trends: Moving Lower To Start The Week

By Joe Wallace

Monday was a holiday, so no new mortgage rate information was published, but on Tuesday after the three-day weekend (for banks, federal offices and some businesses) mortgage loan rates began moving lower. The recovery, such as it was, wasn’t enough to push rates into a new best execution range or rates–borrowers in some cases may notice the difference in closing costs rather than an actual change in the rate. 30-year fixed rate conventional mortgages were reported at, best execution, 3.875% depending on the lender. Some more competitive lenders may be offering rates below that number at the time of this writing, but much depends on the borrower’s financial qualifications and other factors. FHA mortgage loan rates are holding at a best-execution 3.5%, though it’s too early to say whether this | more...

September 24, 2015

Mortgage Rate Trends: Holding Steady

By Joe Wallace

Wednesday saw mortgage loan rates holding steady, more or less, following some improvement from the previous day. There was some weakness in bond markets that affect mortgage loan interest rates, but in spite of that Wednesday is what many in the business call a “sideways” day. 30-year fixed rate conventional mortgages held steady, best execution at between 3.75% and 4.0%. According to our sources only a small number of lenders may have offered the very bottom end of that range, with 3.875% more typical in a best execution scenario. FHA mortgage loan rates hold fast at 3.75% and as always, that best execution rate may vary more among participating FHA lenders. Best execution rates assume ideal conditions–borrowers with outstanding financial qualifications may have access to rates at or near these | more...

September 8, 2015

FHA Mortgage Loan Interest Rate Trends: Higher After Holiday Weekend

By Joe Wallace

Last week mortgage loan rates attempted some downward momentum, but it wasn’t anything close to being a decisive move lower. There is a great deal of anticipation at the moment–all eyes are on the Fed who are due for another meeting where the fate of U.S. interest rates could be decided–will there be a rate hike announced in September? Will the Fed hold off on raising interest rates until December? Those questions seem to be holding mortgage rates in a sideways-to-slightly-higher situation in the short term. After the three-day weekend, mortgage loan rates edged slightly higher, putting 30-year fixed rate conventional mortgages more squarely in 4.0% best execution territory, up from the previous range between 3.875% and 4.0%. So far, FHA mortgage loan rates are holding steady, best execution, at | more...

August 29, 2015

FHA Mortgage Loan Interest Rate Trends

By Joe Wallace

After three solid days of upward movement on interest rates for mortgage loans in general, Friday’s market activity was such that there was no general shift in rates either way–much of the differences seen in Friday’s interest rates would depend on the lender. According to our sources, some were slightly higher, others slightly lower. Some will notice higher or lower actual rates; others will notice the changes in the form of altered closing costs, depending on the lender. 30-year fixed-rate conventional mortgage loans remained in a best-execution range of rates between 3.875% ad 4.0% depending on the lender. FHA mortgage rates continued in their long-held best execution comfort zone of 3.75%. FHA rates tend to vary more among lenders than 30-year fixed rate conventional equivalents, so do some comparison shopping | more...

July 25, 2015

FHA Mortgage Loan Interest Rate Trends: Creeping Toward Month-Long Lows

By Joe Wallace

Mortgage loan rates aren’t quite flat, but the amount of improvement we’ve seen over the last week has been very small. With that in mind, it’s a good thing that the trend has been lower. We haven’t seen rates move from their best execution comfort zones across the board, though our sources report that certain lenders may offer something slightly lower than the best execution rates we’ve been reporting here. Some are offering 30-year fixed rate conventional mortgage loans closer to the high three percent zone they were in much earlier this year than the 4.0% to 4.125% best execution range we’ve seen all week. FHA mortgage loan rates have not moved out of the range we reported previously. Best execution rates for FHA mortgages at the moment are between | more...