Articles Tagged With: Interest Rate Trends

September 29, 2016

Mortgage Loan Interest Rate Trends: Higher After Days Of Recovery

Mortgage loan interest rates moved higher on Wednesday after a recovery streak that would have hit seven straight business days otherwise. In many cases borrowers would notice the Wednesday changes in closing costs rather than an actual higher rate, but as market watchers are fond of pointing out, even with recent moves higher we are still seeing rates at respectable lows. 30-year fixed rate conventional loans ended Wednesday at a best-execution rate of 3.375%, while FHA mortgage loan interest rates (best execution) are at or near their current comfort zone of 3.25% depending on the lender. You may notice greater variation in the actual rates offered by participating lenders, so it pays to look for the best rates and terms. Best execution rates are listed here assuming an ideal borrower | more...

September 27, 2016

Mortgage Loan Interest Rate Trends: Improving

By Joe Wallace

Mortgage loan interest rates improved on Monday, the fourth business day in a row that rates have recovered. There was an upward trend for some time, but some market watchers and industry professionals are using the word “rally” to describe what they’ve been seeing lately. There was considerable attention on the latest Fed statement about interest rates, but once “Fed day” came and went there was no significant change in investor activity-that is to say no increase activity unfavorable to interest rates in specific reaction to the Fed announcement. 30 year fixed rate conventional mortgage loan rates were reported at 3.375%, best execution, on Monday. That puts conventional loan rates in a single number rather than the range of best execution rates we saw previously. FHA mortgage loan rates are | more...

September 15, 2016

Mortgage Rate Trends: Higher

By Joe Wallace

Since our last report on mortgage loan interest rate trends, we’ve seen upward pressure on home loan rates. This week is full of scheduled economic data releases that have potential to add to this depending on investor reaction to the contents of those releases. So far we’re seeing a short-term upward trend consistently through the week. What happens from here remains to be seen, but market watchers are using the word “volatility” quite a bit in recent days. 30-year fixed rate conventional mortgage loan interest rates have moved out of their previous range between 3.375% and 3.5% and are now, best execution, solidly at or near 3.5%. FHA mortgage loan interest rates are still, best execution, in a range between 3.0% and 3.25%. This has been the “comfort zone” for | more...

September 12, 2016

Mortgage Loan Interest Rate Trends: 60-Day Highs

By Joe Wallace

Mortgage rates turned up sharply on Friday after a press conference by the European Central Bank (ECB). There is speculation among market watchers that Friday could be the beginnings of an upward trend in rates, but the talk at the time of this writing is just that-speculation. However, even though past performance does not guarantee future results (especially where markets are concerned) it may be wise to consider the advice of the market watcher for now-we simply can’t predict which way markets might swing next in a post-Brexit climate that includes both the Fed and ECB talking about the future of monetary policy with regards to interest rates, etc. While it’s true that best execution rates for 30-year fixed rate conventional mortgages look the same on paper at the time | more...

September 8, 2016

Mortgage Rate Trends: Moving Lower Ahead Of European Central Bank Press Conference

By Joe Wallace

Press conferences are not directly tied to mortgage loan rates, but depending on the contents of a particular press opportunity investor reaction to such things can and often does affect mortgage loan rates. Over the summer, the European Central Bank (ECB) has had an influence on rates due to a variety of factors (and Brexit cannot be ignored in that respect), so with a press conference Thursday morning for ECB officials, it’s entirely possible that we could see investors react to the contents of that. Or not. At the time of this writing the press conference hasn’t happened yet-it is scheduled for 7:30 AM Central Daylight Time. While that doesn’t sound terribly helpful, it is basically a fact of life with respect to mortgage loan rates. Sometimes these scheduled events | more...

September 6, 2016

Mortgage Loan Interest Rate Trends: Slightly Higher After Friday Jobs Report

By Joe Wallace

Ahead of the holiday weekend, all eyes were on Friday’s employment stats, which can and have acted as a spoiler for mortgage loan interest rates in the past depending on investor reaction to the contents of such reports. Market watchers reported weaker-than-expected numbers in that report, and ahead of a holiday weekend we saw some lenders keeping rates the same, while others had slightly higher numbers to close out the week. 30-year fixed rate conventional mortgages were reported at or near a best execution range between 3.375% and 3.5%. Friday’s increases with some lenders were likely reflected in closing costs rather than actual higher rates. FHA mortgage loan rates continue holding fast in their best execution range between 3.0% and 3.5%. The numbers we’ve been seeing are reported by industry | more...

August 29, 2016

Mortgage Rate Trends: A Mostly Flat Week

By Joe Wallace

Mortgage loan rates were mostly unchanged last week, budging a bit on Friday after Fed chairperson Janet Yellin’s speech at an important event in Jackson Hole, Wyoming. Rates seemed to be in defensive mode in advance of this speech, which many looked to as a possible spoiler for mortgage loan rates. Why? Because at the present moment, investors are looking hard for any hint from the Fed that another interest rate hike might occur, the timing of such a hike, and the severity. The Fed’s rate hike issues have affected mortgage rates in months and years past as investors react to the news or lack of it. Investor behavior is responsible for the Fed-related volatility in mortgage loan rates rather than the Fed itself, so it’s important to make the | more...

August 22, 2016

Mortgage Rate Trends: Slightly Higher

By Joe Wallace

Mortgage loan interest rates were up and down last week, closing on Friday slightly higher ahead of a week that could have major impact on interest rates depending on what Fed Chair Janet Yellin says during a conference in Wyoming. Anytime the Fed or its chairperson has something to say about the possibility or timing of another interest rate hike, we see great potential for volatility in mortgage loan interest rates. That’s due to investor reaction to the statements, as mortgage loan interest isn’t directly tied to events like these. The Wall Street Journal has something to say about this week’s event which may shed a bit of light on why so much attention is paid recently to the Fed and interest rate policy: “The proverbial ‘all eyes’ are turning | more...

August 3, 2016

Mortgage Loan Interest Rate Trends: Higher On Tuesday

By Joe Wallace

Mortgage loan rates pushed slightly higher on Tuesday, thanks in part to bond market activity. There are also scheduled economic data releases this week that have the power to move mortgage loan rates depending on investor reaction to the data in those reports. Market watchers aren’t optimistic that lower rates are coming in the short term, while pointing out that we are still in a range of low rates. 30-year fixed rate conventional mortgages are, at the time of this writing, in a best execution range between 3.375% and 3.5%. That’s up slightly from the a previous range that had 3.625% at the bottom end. FHA mortgage loan rates hold steady at a best execution 3.25%. FHA rates tend to vary more among participating lenders so your experience here may | more...

August 1, 2016

Mortgage Rate Trends: Lower On Friday

By Joe Wallace

Mortgage loan interest rates fell on Friday, bringing them back down to territory closer to what we saw post-Brexit vote. Friday saw the scheduled release of Gross Domestic Product data, and investor reaction to that report sent rates back down, making three days in a row of recovery. 30-year fixed rate conventional mortgages hit a range of best execution rates on Friday, between 3.375% and 3.5%. FHA mortgage loan interest rates are holding at a best execution 3.25% at the time of this writing. FHA rates tend to vary more among participating lenders, so it’s a good idea to shop around. FHA rates sometimes take longer to catch up with changes in mortgage loan rates, but continued upward or downward trends (or a single day of major change) is enough | more...