Articles Tagged With: Interest Rates

June 16, 2015

FHA Mortgage Loan Interest Rate Trends: Holding Steady Ahead Of Fed Announcement

Mortgage loan interest rates are holding steady ahead of an important and much anticipated announcement by the Fed on Wednesday. The Fed does not set mortgage loan interest rates, but as we have seen in the past with the Fed’s handing of Quantitative Easing (QE) that Fed announcements can and do cause a reaction in the markets that directly affect mortgage loan rates. So Wednesday will definitely be a day to watch. At the time of this writing, we’re seeing some sources report best execution rates for 30-year fixed rate conventional mortgage loans at 4.125%, though others offer a best execution range with 4.25% at the top and 4.125% at the bottom. If the Fed were to announce a rate hike on Wednesday, that could bring higher mortgage loan rates | more...

June 13, 2015

FHA Mortgage Loan Interest Rates: Still Near 2015 Highs

By Joe Wallace

We’ve been posting more about home loan interest rate trends as of late–rates have been moving higher in the last few weeks to what some industry professionals term 2015 highs. Next week we are due for an important, and highly anticipated announcement from the Federal Open Market Committee (FOMC) which has the power to influence mortgage loan rates depending on investor reaction to it. The big debate among some market watchers going into next week is whether or not the FOMC announcement WILL affect rates, or if European economic news will overshadow it. We’ve seen behavior like this before–a major, market moving event being overlooked in favor of breaking news from elsewhere. So it’s not entirely clear which way rates could move next week, except that it is reasonable to | more...

June 11, 2015

FHA Mortgage Loan Interest Rate Trends: Moving Lower After Upward Momentum

By Joe Wallace

European economic news has been fueling an upward trend in mortgage loan rates, pushing numbers higher than we’ve seen all year–the highest numbers of 2015 may still be lower than in years past, but the upward trajectory of mortgage loan rates in general has made some wonder where it might end. Did today’s market activity provide an “out” for rates to at least take a breather? On Thursday, rates did stop their upward climb (at least for one day) and pushed back down. 30-year fixed rate conventional mortgage rates had been creeping toward 4.25% as the predominant best-execution rate (out of a range between 4.125% and 4.25%). After today’s downturn the best execution rates are closer to 4.125%. Should a downward trend happen–lower interest rates over a period of days–we | more...

June 10, 2015

FHA Mortgage Loan Interest Rate Trends: Slightly Lower, Then Higher

By Joe Wallace

Last Friday, mortgage rates hit their highest levels of the year in the wake of strong economic data released that day. Rates for 30-year fixed rate conventional mortgages broke the 4% zone and while there was some improvement on Monday, it wasn’t enough to push best execution rates out of the low fours and back into the upper three percent range. On Tuesday rates moved back up, but as our sources are reporting this happened without the usual reasons you might see to spur that move–there was no significant economic data or breaking news that may have acted as a catalyst for investor behavior that pushed rates higher, and so we sit in what many are describing as an unpredictable mortgage loan rate environment that could go in either direction | more...

June 6, 2015

FHA Mortgage Interest Rate Trends: Moving Higher

By Joe Wallace

Mortgage loan interest rates have been trending higher as of late, partially due to overseas economic headlines such as the Quantitative Easing situation with the European Central Bank, but also because of local economic data–case in point, the much-anticipated jobs report that came out on Friday. The Employment Situation Report showed positive data, which can and often does have a negative effect on mortgage loan interest rates. This may seem like a contradiction in the eyes of those not used to watching the markets, but a good thing to keep in mind about mortgage loan interest rates is that when there is bad economic news, mortgage loan rates can and often do improve. When there is positive news the opposite can and often does apply. Investor reaction to Friday’s economic | more...

May 13, 2015

FHA Mortgage Loan Interest Rate Trends: Moving Higher

By Joe Wallace

In spite of some domestic economic developments that should be helping rates move lower (or at least preventing a move higher) mortgage loan rates are moving higher–to the point where some market watchers are using the phrase “highest of 2015” to describe where the rates have gone. Indeed, we’ve seen 30-year fixed rate conventional mortgage loan rates move up into the 4% zone, which is reported “best execution”. That means that outstanding financial qualifications are assumed including excellent FICO scores and loan repayment history. Borrowers with less-than-perfect credit are likely seeing rates above 4.0%. FHA mortgage loan rates are holding for now at 3.75% best execution according to our sources, and again, that is for extremely well-qualified borrowers. There is greater variation for FHA mortgage loan interest rates among lenders | more...

May 8, 2015

FHA Mortgage Rate Trends: Moving Higher

By Joe Wallace

Since our last report, mortgage loan rates have moved higher and faster than they have for much of 2015. Four days in a row of upward pressure on mortgage loan rates saw 30-year fixed rate conventional loans re-entering 4.0% (best execution) territory, though with some improvements happening on Thursday some extremely qualified borrowers may have access to sub-4% rates depending on the lender and the applicant’s financial qualifications. FHA mortgage loan rates have climbed out of a previously reported range (best execution) between 3.375% and 3.5% and into a new, higher best execution rate of 3.75%. Remember, best execution rates are available in situations where a borrower has extremely good financial qualifications. The availability of a participating lender can also be a factor–your experience may vary depending on FICO scores, | more...

April 28, 2015

FHA Mortgage Rate Trends: Higher Ahead Of Fed Announcement

By Joe Wallace

Mortgage loan rates shot up to highs we haven’t seen in around a month–Tuesday rates pushed higher ahead of two important economic data releases on Wednesday that have potential to push mortgage loan rates in one direction or the other depending on investor reaction to the contents of those releases. Wednesday morning sees the release of numbers from the first quarter Gross Domestic Product report (in the morning) and an announcement from the Fed (in the afternoon). The Fed event will be watched carefully as markets will react to any news that indicates whether or not the Fed intends to raise interest rates. That would have an effect, depending on how investors respond to the information, of pressuring rates higher or giving them a chance to recover from today’s move | more...

April 9, 2015

FHA Mortgage Loan Interest Rate Trends: Mixed

By Joe Wallace

Mortgage loan rates have been up and down since our last report–there has been some volatility that saw rates climbing ahead of last week’s Employment Situation Report, then making strong gains last Friday, which were in turn undone by upward movement the following Monday. 30-year fixed rate conventional mortgage rates have, best execution, climbed to 3.75% as of Wednesday’s reports at market closing time. The release of Fed meeting minutes this week was expected to be a market mover, but rates moved more or less sideways in the wake of the release of that information. FHA mortgage loan rates have found a “comfort zone” in all this, with a range between 3.25% and 3.5% best execution. FHA mortgage loan interest rates tend to vary more among lenders than their 30-year | more...

March 18, 2015

FHA Mortgage Rate Trends: Large One-Day Drop In Best Execution Rates

By Joe Wallace

On Wednesday mortgage loan rates in general saw a significant drop in the wake of a highly anticipated Fed announcement, which included words some have taken to mean there will be no interest rate increase in the month of April. Some sources are labeling today’s downward move as “the best day of 2015” based on that drop; 30-year fixed rate conventional loan best execution rates are for some extremely well-qualified borrowers coming in at 3.75%, best execution. Borrowers who “floated” into the Fed announcement today were, by all accounts, given a good payoff. That said, those who floated are now being encouraged by many industry professionals to lock, as there is no guarantee that today’s sharp improvement in best execution rates will continue tomorrow or the next day. The lenders | more...