Articles Tagged With: Interest Rates

January 22, 2016

Mortgage Rate Trends: Sideways

Mortgage rates hit lows not seen in many months at the end of last week, and in spite of some small amount of lost ground we still see mortgage rates at sub-four percent lows at the time of this writing. Thursday saw 30-year fixed rate conventional mortgage loan interest rates staying, best execution, in a range between 3.75% and 3.875%. FHA mortgage rates are holding steady at the time of this writing at 3.5% (best execution) which is a far better comfort zone to fall into than the previously long-held 3.75%. How long FHA rates will remain here isn’t clear but the mortgage rates today held fast in spite of some market conditions that ordinarily would put upward pressure on rates. So it’s clear that there’s some potential for rates | more...

January 5, 2016

Mortgage Rate Trends: 14-Day Lows

By Joe Wallace

On Monday we reported that mortgage loan interest rates had moved slightly higher to close out 2015–rates for 30-year fixed rate conventional mortgages ended the year in a range between 4.125% and 4.25% (best execution) and 2015 rates for FHA mortgages closed out at a best execution 3.75%. On the first day back from the New Year’s holiday, mortgage rates lost no time regaining some of that lost ground. Mortgage rates for 30-year fixed rate conventional home loans are now in a range between 4.0% and 4.25% (best execution). FHA mortgage loan rates did not move out of their best execution comfort zone of 3.75%, though if there is sustained improvement we could see rates for FHA mortgages shift into a range rates with the current best execution rate at | more...

January 4, 2016

Mortgage Loan Rate Trends: Closing Out 2015 Higher

By Joe Wallace

In the last week of 2015, we saw mortgage loan rates creeping higher, staying above the four percent mark for 30-year fixed rate mortgage loans. A holiday week can keep rate movements conservative, and two holiday weeks in a row can make things quite calm, but that quiet did not prevent the upward drift of rates. 30-year fixed rate conventional mortgages closed out 2015 in a best execution range between 4.125% and 4.25%. FHA mortgage rates, in spite of the upwards creep we’ve seen in the past two weeks, did not move from their best execution comfort zone of 3.75%. That best execution rate tends to vary more among participating lenders than with conventional loan equivalents, so your experience may depend on the lender. Additionally, best execution rates are not | more...

December 17, 2015

Mortgage Rate Trends: Fed Day, Interest Rate Hike

By Joe Wallace

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 15, 2015

Mortgage Rate Trends: Higher Ahead Of Fed

By Joe Wallace

With a great deal of anticipation on Wednesday’s Fed meeting, it’s no surprise that there’s some volatility in mortgage rates this week–Monday saw rates creeping higher ahead of the Fed; there is much speculation about the potential for the first interest rate hike by the Fed since 2006. Whether or not that happens remains to be seen, but in the meantime investor behavior in the days leading up to the Fed meeting creates days like this. And that means that at the time of this writing, 30-year fixed rate conventional mortgages were, best execution-wise, running between 4.0% and 4.125% depending on the lender. Our sources report that some lenders are still aggressively offering rates below the 4.0% range to the best qualified borrowers, but experience may vary depending on a | more...

December 11, 2015

Mortgage Rate Trends: Higher Ahead Of Retail Sales Report, Then Lower On Friday

By Joe Wallace

Thursday saw mortgage loan interest rates move higher ahead of this week’s much-anticipated retail sales report. On Thursday we saw 30-year fixed rate conventional mortgage loans move higher (4.0% best execution depending on the lender), though borrowers may notice the increase in closing costs instead of an actual higher number from the day before. The FHA mortgage loan rates stayed (best execution) in the 3.75% comfort zone, but those who shop around for a lender will notice more variation in FHA mortgage loan rates than with conventional equivalents. And then there was Friday–a day where the Retail Sales report could have been a spoiler for rates depending on the report and investor reaction to it. But at the end of the day, rates moved lower, putting 30-year fixed rate conventional | 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 19, 2015

Mortgage Rate Trends: Unchanged To Slightly Higher

By Joe Wallace

All eyes were on the Fed on Wednesday in anticipation of the release of Fed meeting minutes many hoped would give a bit more clarification to the possible December interest rate hike that’s been discussed. After the release of those minutes, mortgage rate behavior only changed a small amount, leaving best execution rates more or less where they have been in the last few days. Is a rate hike coming in December? That has not been confirmed (the Fed is definitely pointing towards the possibility), but many sources believe that interest rates for mortgage loans probably won’t take any steep plunges before that issue is cleared up. We’re likely staring at a tight range of rates until that happens. Some feel there is still potential for rates to move lower | more...

November 16, 2015

Mortgage Loan Interest Rate Trends: Cautiously Improving

By Joe Wallace

For six days in a row, mortgage rates pushed higher. Then, for three days last week rates either leveled off or tried to improve. We’ve seen a general upward trend since Fed statements about a possible interest rate hike; the trends seems to be upwards for now in anticipation of the December Fed announcement that could reveal more about that possible rate hike. And in the meantime, breaking economic news or world events could also come together to influence rates depending on the nature of those headlines or events. It’s not just domestic economic news at work as an influencing factor on mortgage loan rates. All the talk of the Fed raising rates has markets and investors reacting in ways that put upward pressure on mortgage rates in general. 30-year | more...