Articles Tagged With: Interest Rates

March 14, 2017

Mortgage Loan Interest Rates Surging Higher Ahead of Fed

Since our last report, mortgage rates have pushed significantly higher. Industry professionals are watching the Fed very carefully at the moment as it’s expected that the Fed will hike interest rates soon. Any indication of that hike, the timing of the hike, or its’ severity is sure to send investors scrambling in one direction or the other. A hike in rates is a sign that the Fed has more confidence in the economy, but as we’ve mentioned here before, what is good for the economy is often bad news for mortgage loan interest rates. We are likely to see markets react in anticipation or out of a certain set of expectations rather than the actual reality of the situation. This sort of thing has happened before, when the Fed began | more...

March 6, 2017

Mortgage Rate Trends: Higher

By Joe Wallace

Mortgage loan rates have been rising in small increments for the last five business days-Friday’s move upward was small but is still part of that overall upward trends. The Fed is likely to announce an interest rate hike at their meeting on the 15th, which won’t help the mortgage rate environment, but by the time that hike is announced rates are likely to already reflect any negative consequences (on mortgage rates). What is good news for the economy is often bad news for mortgage loan interest rates. The Fed raising rates is an indicator that the economy is stronger, and investor reaction to that climate can and often does have a negative effect on mortgage rates. At the time of this writing, 30-year fixed rate conventional mortgages are reported at | more...

March 1, 2017

Mortgage Rate Trends: Slightly Higher

By Joe Wallace

We’ve seen three days of improvement, followed by two days of mortgage rates creeping upward. The rate environment at the time of this writing is a bit contrary-we have seen stronger economic news and data this week that traditionally has put upward pressure on interest rates. But the most recent stronger data hasn’t put as much pressure on mortgage rates and for that we can report that number-wise, the best execution rates haven’t budged that much. Affected borrowers will likely see the difference reflected in closing costs. 30-year fixed rate conventional mortgages are holding at a best execution 4.125% at the time of this writing, which is an adjustment from the earlier range between 4.125% and 4.25% best execution. FHA mortgage rates are holding in a range between 3.75% and | more...

February 16, 2017

Mortgage Rates: Five Days Of Moving Higher

By Joe Wallace

Mortgage rates have been moving steadily higher for the last five business days; the most recent move higher on Wednesday was motivated in part by investor reaction to stronger economic data including a stronger Retail Sales report and better news associated with inflation stats. This data was part of scheduled economic data releases due out this week, and mortgage rates moved higher as they are often wont to do when there is good economic news. The move higher puts fixed rate conventional mortgage loan rates in a range with 4.375% best execution at the upper end-our sources indicate that more lenders are offering rates at or near the higher end. But the real news involves a change in FHA mortgage loan best execution rates-these numbers have been slower to change | more...

February 15, 2017

Mortgage Rates: Four Days Of Moving Higher

By Joe Wallace

In the short-term, mortgage rates have been on an upward swing. Tuesday’s rate activity had early higher moves, but with recovering later in the day, resulting in a continuation of the recent range of conventional rates but with more lenders reporting the higher part of that range. 30-year fixed rate conventional mortgages are, at the time of this writing, being reported at a best-execution range between 4.125% and 4.25%, but as mentioned above the more common rates are found at or near the upper end. FHA mortgage rates are holding at 3.75% but with the current short term upward trend, it’s not clear how long that best execution rate may persist. FHA mortgage rates tend to vary more among participating lenders than their conventional counterparts. It’s best to shop around | more...

February 7, 2017

Mortgage Loan Interest Rate Trends: Two-Week Lows

By Joe Wallace

Mortgage rates took a move lower on Monday to levels many have been hoping to see more of in the last two weeks. Though the move does not dramatically change mortgage loan interest rate numbers, could we be on the start of a short-term trend due to global economic uncertainty? Some of our sources seem to think that at the very least, today’s downward movement was inspired by investors seeking safer havens, with mortgage rates reaping the benefit of their investment activity. 30-year fixed rate conventional mortgages are now reported in a best-execution range between 4.125% and 4.25%. Affected borrowers may notice the changes reflected in closing costs rather than an actual rate adjustment. FHA mortgage rates continue in their best execution comfort zone at 3.75%. FHA rates often take | more...

February 6, 2017

Mortgage Rate Trends: Higher, Lower

By Joe Wallace

Last week, mortgage rate numbers basically see-sawed within the range we’ve been looking at ever since the new year began. Mortgage rates began last week lower, but moved up and down from Wednesday on due to a variety of economic data releases and investor reaction to them. The Fed also made a statement last week that negatively affected rates. The causes of the ups and downs are not directly tied to rate performance, but investor reaction to the economic developments and data of last week does affect rates. Overall, we’re seeing about the same rates at the time of this writing as we reported last week, more or less, but changes in closing costs will be apparent to borrowers affected by those changes. At the time of this writing, 30-year | more...

February 2, 2017

Mortgage Loan Interest Rate Trends: Edging Higher

By Joe Wallace

Much attention was given to the Fed on Wednesday, but there was no hint of another planned rate hike; good news for now but that did not help mortgage loan rates in the end as stronger-than-expected jobs data helped put upward pressure on rates. Those who are not used to watching mortgage rate trends may be confused at this, seeing that what’s good for the economy will often be bad for mortgage rates. And that is not just perception. When economic data such as the Employment Situation Report shows strength, that often equals higher rates in the short term. Such reports do not directly affect mortgage loan interest rates, but investor reaction to that data can and often does. And such was the case on Wednesday, with stronger employment figures | more...

January 19, 2017

Mortgage Rate Trends: Moving Higher

By Joe Wallace

While we don’t report on mortgage rate trends on a daily basis, we do give more time to that coverage when circumstances warrant, and this week definitely rates a closer look at the trends. Since our last report, mortgage rates moved decisively higher, pushing back in the direction of the mid-four percent zone (but not there yet). Some market watchers blame (at least in part) bond market performance for the most recent upward spike that pushed 30-year fixed rate conventional mortgages into a range between a best execution 4.125% and a best execution 4.25%. Prior to that, coming out of the weekend we saw more lenders at the lower end of that range. Could some borrowers see them most recent changes reflected in closing costs rather than actual mortgage rate | more...

January 17, 2017

Mortgage Rate Trends: Edging Higher

By Joe Wallace

Markets were closed on Monday for the Martin Luther King, Jr. holiday, so today’s post should be read with that in mind. Since our last report, mortgage rate trends have taken a turn upward. That move has given back some of the gains mentioned in our last report, but at the time of this writing we’re still looking at changes small enough to be reflected mostly in closing costs for affected borrowers, but some lenders have repriced as we’ll see below. The upward move comes in spite of some retail sales economic data that has (in the past) helped mortgage rates rather than hurt them, but the existence of data of that nature doesn’t guarantee movement in mortgage rates; it all depends on investor reaction to the data. And we | more...