Articles Tagged With: Interest Rates

January 16, 2017

Mortgage Rate Trends: Edging Higher

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 know that investor reactions aren’t always predictable and don’t always follow historical precedent. 30-year fixed rate conventional mortgage loan interest rates are | more...

January 12, 2017

Mortgage Rate Trends: Improving

By Joe Wallace

Before the new year, but after the 2016 election, mortgage rate trends were in what seemed to be an upward trajectory due to a variety of factors including uncertainty among investors regarding the new administration. But since the new year, we’ve seen more recovery, including the days following our last report. On Thursday, mortgage rates continued improving in small increments, with affected borrowers often getting the benefit in closing costs rather than an actual change in the mortgage rate. At the time of this writing, 30-year fixed rate conventional mortgages were at a best-execution 4.125%. That’s not a change from our previous report, but according to our sources more lenders are offering this best-execution rate now than since our last post. 4.125% could be at or near what some market | more...

January 9, 2017

Mortgage Rate Trends: Lower Overall

By Joe Wallace

Since our last report we’ve seen a mortgage rate recovery of sorts, but it is still too early to label it on overall short-term downward trend. Last week rates moved lower in short-term ways that give some market watchers reason to use the term “correction” in their reports, but Friday’s Employment Situation Report did cause a bit of an upward turn for mortgage loan interest rates. The key to Friday’s move is that the changes weren’t terribly surprising to those paying close attention, and even with a modest readjustment, we’re still looking at numbers we haven’t really since since the election, as you’ll see below. 30-year fixed rate conventional mortgages moved as low as a best-execution 4.125%, but 4.25% is also available from some lenders, so we have a best | more...

December 29, 2016

Mortgage Loan Interest Rates: Lower

By Joe Wallace

Mortgage loan interest rates clawed back some of their losses on Wednesday, dropping down to 14-day lows and creeping back from the mid four-percent zone a bit. The gains came after bond market activity favorable to mortgage loan rates. Professional market watchers say we’re likely not to see any significant, decisive movement until well after the New Year’s Eve holiday, but the improvements on Wednesday are encouraging to some. There are plenty of factors that could still put upward pressure on mortgage rates including economic uncertainty related to the American political climate. “Wait and see” is the phrase most used when contemplating this as a spoiler on mortgage rates. Borrowers unsure of whether to lock in a mortgage rate commitment with a lender or not should discuss the current rate | more...

December 27, 2016

Mortgage Rate Trends: Slightly Lower Ahead of Holidays

By Joe Wallace

Mortgage rate trends ahead of the extended weekend included some very minor improvements-welcome changes from the recent steady upward momentum we’ve seen post-election. But these changes aren’t enough to push best execution rates lower, it’s going to take either many days of sustained-but-small improvement or some more significant changes in the short term to revise rates lower. Borrowers affected by the recent incremental moves lower will likely see the changes reflected in closing costs. Just ahead of the holiday weekend, 30-year fixed rate conventional mortgages were reported in a best execution range between 4.25% and 4.5%. That’s quite a long spread, but it is important to keep in mind that the most competitive lenders (and a small number of them, too) are the ones at the lowest end of the | more...

December 22, 2016

Mortgage Rate Trends: Slightly Lower

By Joe Wallace

Since our last report on mortgage rate trends, we’ve seen a minor bit of improvement in interest rates, but the numbers still remain at highs not seen in the last couple of years. The improvements will likely be reflected in closing costs where applicable, and the range of rates is still at or near what it’s been in recent days. That means that 30-year fixed rate conventional mortgages are holding in a range between 4.375% at the very bottom end and 4.5% at the top end, best execution. FHA mortgage rates are holding in a best execution comfort zone of 4.0%, though if upward movement resumes we could see this turn into a range of rates also. Best execution rates assume ideal borrowers. Your FICO score, loan repayment history, and | more...

December 19, 2016

Mortgage Rate Trends: Approaching Mid Four Percent Range

By Joe Wallace

Since our last report on mortgage rate trends, we’ve seen the upward trend continue into highs not seen for quite some time. Market watchers note that some seasonal market trends that affect rates are at work here, but those forces are not the only ones with the power to alter mortgage rates (based on investor reaction to things like breaking economic or political news, etc.) 30-year fixed rate conventional mortgage rates have, best execution, moved into a range of rates that are at or near the mid four percent zone. At the time of this writing, don’t be surprised to find best execution conventional rates ranging between 4.25% and 4.625%. The upper and lower ends of this range are more rare, but according to our sources certain lenders may offer | more...

December 8, 2016

Mortgage Rate Trends: Lower

By Joe Wallace

Mortgage rate numbers have fallen a bit since our last report. The current upward trend has seen some corrections, but Wednesday’s lower rates are inspired by overseas economic developments. Specifically, the European Central Bank(ECB) is set to make an important announcement about tapering-an issue that was a major spoiler in mortgage loan interest rates at home in years past. The ECB announcement has no direct connection to the daily FHA or conventional mortgage rate, but investor behavior often does, and that’s what happened on Wednesday. Investors are placing their money where they anticipate it will do the most good depending on whether the investor believes tapering will happen soon or not. The details of those investment strategies are unimportant for our purposes here; suffice it to say that investor behavior | more...

December 5, 2016

Mortgage Rate Trends: Higher, Then Lower

By Joe Wallace

Since our last look at mortgage loan interest rate trends, rates spiked to 24-month highs (Thursday), but then recovered on Friday. Thursday’s move took 30-year fixed rate conventional mortgage loan rates to a range between 4.25% and 4.375% (best execution). But Friday saw the same rates move back down to at or near 4.125%, best execution. On both Thursday and Friday, FHA mortgage rates remained at 4.0%, but that’s up from a previous range that still had a bottom end in the sub-four percent zone. That is gone for now, but FHA rates, best execution, haven’t been in the four percent zone in quite some time leading up to the current upward trend. Friday’s rate recovery happened in spite of job report numbers that, in times past, have served to | more...

November 29, 2016

Mortgage Rates: Recovering

By Joe Wallace

Since our last report on mortgage loan interest rate trends, we saw 30-year fixed rate conventional mortgage rates hit 4.25% best execution (depending on the lender). That was something of a milestone in 2016 after many, many months of sub-four percent mortgage rates. But since that time, rates have recovered some lost ground and while the current best execution rates are still above the four percent mark, any news of lower rates at this point is welcome. 30-year fixed rate conventional mortgages are, at the time of this writing, reported at a best execution range between 4.125% and 4.25% depending on the lender. FHA mortgage loan rates are still within a range between 3.75% and 4.0%, best execution. As we always point out, the rates seen here are listed assuming | more...