Articles Tagged With: Interest Rates

August 29, 2015

FHA Mortgage Loan Interest Rate Trends

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...

August 25, 2015

FHA Mortgage Rate Trends: Slightly Lower As Stock Market Varies

By Joe Wallace

Mortgage rates were, in the eyes of some observers on Monday, quite conservative in the shadow of stock market ups and downs. Rates did creep a bit lower, putting 30-year fixed rate conventional mortgages solidly into 3.875% territory, best execution. That eliminates the previous range of best execution rates for 30-year fixed conventional rates that saw 3.875% at the low end. FHA mortgage loan rates are still in their comfort zone of 3.75% best execution, though as always rates may vary more among participating FHA lenders. Best execution rates are not available to all borrowers or from all lenders–your experience may vary depending on your FICO scores and other financial qualifications. The availability of a participating FHA lender may also play a role in your access to rates like theses. | more...

August 17, 2015

FHA Mortgage Loan Interest Rates

By Joe Wallace

FHA home loans have a set of rules that govern interest rates. HUD 4155.1 explains that lenders must inform the borrower that FHA loan interest rates are negotiable–FHA does not set or regulate the rates, though it does require interest rates on FHA loans to be reasonable and “customary” compared to similar loans of its type. Chapter One of HUD 4155.1 states: “Under all currently active FHA single family mortgage insurance programs, the borrower and the lender negotiate the interest rate and any discount points.” We write regularly about FHA loan interest rate trends, and discuss something called the interest rate lock or interest rate lock-in, which is an agreement between the borrower and lender to commit to a mortgage rate for a specific period of time, to protect the | more...

August 1, 2015

FHA Mortgage Loan Interest Rate Trends: 60-Day Lows

By Joe Wallace

Mortgage loan rates have been in a recovery mode of sorts over many days–tiny increments of rate improvements have brought closing costs down over time but the basic best execution rates we’ve been reporting on here haven’t changed–until Friday, when a weaker-than-expected jobs data report brought a more dramatic move lower for mortgage rates. The move was sharp enough to pull both conventional 30-year fixed rate mortgage loan interest rates and FHA loan interest rates out of their previously reported best execution range of rates and back into a single number on Friday. Conventional 30-year fixed rate mortgages are now reported at, best execution, 4.0% with some more aggressive lenders offering borrowers with the best FICO scores and credit histories rates in the high three percent range. FHA mortgage loan | 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...

July 18, 2015

FHA Mortgage Rate Trends: Small Recoveries

By Joe Wallace

Mortgage loan interest rates have been rising and falling in a volatile market; a combination of economic factors at home and headlines from overseas referring to the Greek crisis and China stock market woes have made for some unpredictable times where the rates are concerned. Some market watchers believe that we’ve seen the highest point rates might go to in the short term and that some kind of leveling off period is due. But only time will tell; for now rates have been making very small improvements that are approaching the lowest levels for the entire month. 30-year fixed rate conventional loans have moved out of a best execution range with 4.25% at the upper end. 4.125% is now the most common best execution rate according to our sources. FHA | more...

July 15, 2015

FHA Mortgage Loan Interest Rate Trends: Slightly Lower After Fed Testimony

By Joe Wallace

On Wednesday, mortgage loan rates improved slightly after semi-annual testimony by the Fed Chair was delivered to Congress. Rates didn’t improve all that much, but with 30-year fixed rate conventional mortgage loans, we’re seeing reports of more lenders offering best execution rates closer to the bottom of the four percent range than yesterday. FHA mortgage loan rates seem to have found a comfort zone, with best execution rates between 3.75% and 4.0% reported for many days now. Remember, your experience may vary–best execution rates are offered to borrowers with ideal credit scenarios. The rates you see reported here are not available to all borrowers or from all lenders. The availability of a participating FHA lender offering these rates or something similar may also be a factor FHA mortgage loan rates | more...

July 7, 2015

Mortgage Loan Interest Rate Trends: Decisively Lower

By Joe Wallace

We’ve been watching as mortgage loan interest rates overall have moved higher this summer; the upward trend brought 30-year fixed rate conventional mortgage loan rates back into the low four percent zone, best execution. The FHA mortgage loan interest rates followed suit, but only very late in the trend–we recently watched as FHA mortgage loan rates broke out of the previously long-held 3.75% comfort zone and into a range of best execution rates with 3.75% at the low end and 4.0% at the high end. Greek economic headlines have been responsible for at least some of the volatility in recent weeks, and in light of Sunday’s referendum voting No in regard to a set of changes proposed by its creditors in the Eurozone, the fact that Monday’s rate behavior took | more...

July 6, 2015

FHA Loan Interest Rates: The Rules For Lock-Ins

By Joe Wallace

Since we got a recent reader question about the rules and regulations about FHA loan interest rate locks, it seemed like a good time to review the FHA mortgage loan rules that govern them. At the time of this writing, the FHA and HUD are getting ready to transition to a new volume of rules covering FHA Single Family mortgage loan transactions, HUD 4001.1. Until the effective date in September 2015, the previously used references are valid. In general many of the single family loan rules may be the same, but there have been plenty of changes and updates to certain policies. The information below is still valid at the time of this writing. FHA loan rules state, “Under all currently active FHA single family mortgage insurance programs, the borrower | more...

June 17, 2015

FHA Mortgage Loan Rates: Post-Fed, Moving Lower

By Joe Wallace

It’s been a tricky week for mortgage loan rates in general; rates seemed to be in a “defensive” position ahead of the highly anticipated Fed announcement which happened today–that announcement had major power to influence rates higher or lower depending on the contents of the statement and investor reaction to it. So what happened with rates today? According to several sources, certain markets that influence mortgage rates were weak in the morning, which sent some lenders to adjust their rates accordingly. Once the Fed had made its eagerly awaited announcement, rates began moving back the other way. Why? The Fed could have announced an interest rate hike today, which can and often does (when it occurs) have a negative effect on mortgage rates. But instead, the Fed declared that while | more...