Articles Tagged With: Interest Rates

November 11, 2016

Mortgage Rate Trends: Sharply Higher Post-Election

Mortgage loan interest rates are not tied to election results. However, investor reaction to major events that have economic implications-and the 2016 Presidential election is definitely one of those-can and often does result in changes in mortgage loan rates. We won’t speculate or editorialize on the outcome of the 2016 election, that’s beyond the scope of this report. However, in the wake of election night, we have seen markets react sharply to both the results and the aftermath. On election night alone, the Dow fell dramatically after hours, with recovery the next day. This is a common knee-jerk reaction in the marketplace under such circumstances. What’s important for borrowers to know? At the moment we are in an upward trend for mortgage loan interest rates. Investor reaction to the election | more...

November 3, 2016

Mortgage Rates: Slightly Better

By Joe Wallace

Mortgage loan rates recovered a bit on Wednesday, making nearly a full week of either no upward movement or slight recovery on a daily basis. Borrowers affected by these four days will likely have noticed the differences in closing costs rather than adjustments in rates. There was some attention paid to Wednesday’s Fed announcement, since past versions of this have either moved or had serious potential to move mortgage loan rates based on investor reaction to the contents of such announcements. But this time around, there was nothing noticeable; the markets seem more interested in the uncertainty surrounding political events at the moment. 30-year fixed rate conventional mortgages are still at or near 3.625% best execution. FHA mortgage rate conditions haven’t altered either, holding steady in the comfort zone range | more...

October 25, 2016

Interest Rate Trends: Higher

By Joe Wallace

We’ve watched an overall upward trend in interest rate behavior for mortgages in recent weeks, and while there have been some days of recovery, it seems that at present there are a variety of factors putting upward pressure on rates. Market watchers have been using the phrase “the trend is not your friend” for a while now, and Monday’s rate movement showed no signs of proving that phrase wrong in the short term. Rates moved higher on Monday, not enough to push actual numbers up, but enough so that affected borrowers may notice a difference in closing costs. 30-year fixed rate conventional mortgages are still being reported at or near 3.625% (best execution), and the FHA mortgage loan interest rate range between 3.25% and 3.5% is still there (again, best | more...

October 19, 2016

Mortgage Interest Rates Recover Slightly

By Joe Wallace

Interest rates for mortgage loans improved in a small way for the second day after a prolonged “losing streak” that managed to push conventional loans out of a a previous range and into a single, higher number and FHA mortgage loan interest rates out of their single-number best execution territory. 30-year fixed rate conventional mortgages are, best execution, at or near 3.625%, with their previous range being (depending on the lender) between 3.5% and 3.625%. FHA mortgage loan rates are now in a range between 3.25% and 3.5% best execution at the time of this writing. Best execution rates listed here assume ideal conditions including an extremely well-qualified borrower with outstanding FICO scores and loan repayment/credit history. Your experience may vary, and best execution rates are not available to all | more...

October 17, 2016

Mortgage Loan Rates: Friday Bounce

By Joe Wallace

In our last report, we noted that mortgage loan rates had made some improvement, but the very next day we saw rates bouncing to highs not seen in several months-a move that not only affected conventional mortgages, but also served to push FHA mortgage loan interest rates out of their long-held comfort zone and into a new range. Some market watchers noted that the move higher didn’t begin until later in the day on Friday, which could have resulted in some lenders failing to change or “reprice” on that day. Depending on how things go on Monday, that could mean higher numbers for some lenders who didn’t reprice already. That means those contemplating their options when it comes to locking in a mortgage loan interest rate commitment with their lender | more...

October 14, 2016

Mortgage Rate Trends: Recovery

By Joe Wallace

After ten days of no improvement, upward pressure on interest rates finally broke on Thursday, but some market watchers are not ready to declare that day’s respite from higher numbers a decisive victory. In fact, some say this could be a resting moment before rates continue to push upward. Some industry professionals are using the word “lock” quite a bit in public statements aimed at those who haven’t yet made an interest rate lock commitment with their lenders and are within a month to two months of closing. It’s hard to argue with their logic, and rates have been low for quite some time. Is the current trend just a short term development or do we have a new range of rates to look forward to in the coming months? | more...

October 3, 2016

Mortgage Loan Rate Trends: Mixed

By Joe Wallace

Mortgage loan interest rates closed mixed on Friday, gaining back some ground after a couple of days of slightly higher movement. Overall, last week was a bit of a tug-of-war, but on Friday best execution rates are still reported at levels we’ve seen all week, with minor ups and downs likely being reflected in closing costs rather than actual rate changes depending on the lender. 30-year fixed rate conventional mortgages ended Friday at 3.375%, best execution. Market watchers noted on Friday that some lenders marked up, some marked down, and it’s likely that some also stayed the same from Thursday. Bond market activity is a player in the Friday numbers, but how that factors into the week ahead remains to be seen. FHA mortgage loan fixed interest rates remain in | more...

September 27, 2016

Mortgage Loan Interest Rate Trends: Improving

By Joe Wallace

Mortgage loan interest rates improved on Monday, the fourth business day in a row that rates have recovered. There was an upward trend for some time, but some market watchers and industry professionals are using the word “rally” to describe what they’ve been seeing lately. There was considerable attention on the latest Fed statement about interest rates, but once “Fed day” came and went there was no significant change in investor activity-that is to say no increase activity unfavorable to interest rates in specific reaction to the Fed announcement. 30 year fixed rate conventional mortgage loan rates were reported at 3.375%, best execution, on Monday. That puts conventional loan rates in a single number rather than the range of best execution rates we saw previously. FHA mortgage loan rates are | more...

September 19, 2016

Interest Rate Trends: Unchanged To Slightly Higher

By Joe Wallace

Mortgage rates closed out unchanged for some, higher for others, depending on the lender. After some steady upward pressure on rates, we’ve seen both conventional and FHA mortgage loan interest rates affected ahead of an important week for rates with the Fed about to make another policy announcement, plus the release of housing data. The Fed meeting comes Wednesday and has had the power to influence loan rates in the past depending on investor reaction. There is strong potential for higher rates depending on what happens on Wednesday, so it’s best to assume that can and will happen and plan accordingly. On Friday, 30-year fixed rate conventional mortgages were reported at or near 3.5% best execution, with FHA mortgage loan rates reported at or near a best execution 3.25%. That | more...

September 15, 2016

Mortgage Rate Trends: Higher

By Joe Wallace

Since our last report on mortgage loan interest rate trends, we’ve seen upward pressure on home loan rates. This week is full of scheduled economic data releases that have potential to add to this depending on investor reaction to the contents of those releases. So far we’re seeing a short-term upward trend consistently through the week. What happens from here remains to be seen, but market watchers are using the word “volatility” quite a bit in recent days. 30-year fixed rate conventional mortgage loan interest rates have moved out of their previous range between 3.375% and 3.5% and are now, best execution, solidly at or near 3.5%. FHA mortgage loan interest rates are still, best execution, in a range between 3.0% and 3.25%. This has been the “comfort zone” for | more...