Articles Tagged With: Interest Rates

June 27, 2016

Mortgage Rate Trends: Sharply Lower Following Brexit Vote

For five straight business days prior to the Brexit vote, mortgage loan rates moved higher. Investor reaction to the anticipation of the vote played an important part in this; uncertainty over the outcome of the vote and what the vote might do to markets added potential volatility to the daily ups and downs for mortgage loan rates in general. Then the Brexit vote happened, the majority spoke, and investors reacted accordingly. The result? A major shift lower for mortgage rates on Friday, one not seen since well over a year ago. Rates moved lower in one day than they have in all that time, resulting in 30-year fixed rate mortgage best execution rates to fall down 3.5%. FHA mortgage loan rates finally shifted out of their comfort zone during Brexit | more...

June 21, 2016

Mortgage Rate Trends: Higher, Faster To Begin The Week

By Joe Wallace

Mortgage rates kicked off the week moving higher and faster than last Friday. The “Brexit” drama in Europe is partly to blame, as investor reaction to the economic uncertainty there influences mortgage rates here. For a while, bond market activity in that regard was favorable to mortgage loan interest rates, but now the wind seems to be shifting directions. The fact that investors don’t know what will happen with the Brexit (will Britain stay in the EU or depart?) and more importantly, don’t know what will happen economically as a result of whatever choice ends up being made is contributing to volatility and potential volatility between now and Brexit referendum time on Thursday. There are some market watchers who are now saying that recent lows are likely as low as | more...

June 20, 2016

Mortgage Rate Trends: Slightly Higher On Friday

By Joe Wallace

At the end of the day on Friday, mortgage loan rates had moved higher, but not by much and certainly not enough to pull rates out of territory many are describing as “lowest in years”. In the past week or more we’ve seen rates move, at certain points, into lows that for conventional 30-year fixed rate mortgages actually rivals the FHA loan offerings which are typically lower. Last week we saw 30-year fixed rate conventional mortgages move as low as 3.375% for some of the most competitive lenders, and around 3.625% for others, with a best execution average somewhere in the middle. This territory is in direct best execution competition (technically speaking) with FHA loans which are still in a best execution comfort zone between 3.25% and 3.5%. FHA loan | more...

June 15, 2016

Mortgage Rate Trends: Pots-Fed Rates Are Still Holding At Or Near Recent Gains

By Joe Wallace

All eyes were on the Fed on Wednesday for a much anticipated announcement about the future of interest rate hikes. As a June 15 2016 USA Today article mentions, “The Federal Reserve held interest rates steady on Wednesday and predicted more gradual hikes the next few years amid somewhat slower economic growth and persistent headwinds to a more vibrant economy.” The Fed issued a statement following a two-day meeting, and while there is no indication the Fed definitely will NOT raise rates in July, recent economic data release leads some to believe that July is too early for the Fed to make that move. As the USA Today article states, Fed Chair Janet Yellin was quoted on Wednesday saying, “We need to assure ourselves that the underlying momentum in the | more...

June 14, 2016

Mortgage Loan Interest Rate Trends: More Gains

By Joe Wallace

At the time of this writing, the end of the market day (Tuesday June 14) hasn’t happened yet. But the news about mortgage loan interest rates–even without the most current end-of-day interest rate data–is definitely encouraging for anyone considering a home loan at the present. Rates have fallen to lows not seen in quite some time. 30-year fixed rate mortgage loan interest rates (best execution) were reported at the end of the business day on Monday at a range between 3.625% at the upper end of the range and an FHA loan-challenging 3.5% at the lower end of the range. Some are saying these are the lowest we’ve seen rates in several years, while others are using the phrase “close to all-time lows” to describe what is being seen, best | more...

June 10, 2016

Mortgage Rate Trends: Moving Even Lower

By Joe Wallace

Mortgage rates dropped lower on Thursday, putting them at levels we haven’t seen in quite some time. Some market watchers are hailing this move as a “three year low”, but whatever you call it, conditions are right to but conventional mortgage loan best execution rates (depending on the lender) in line with the upper end of the FHA mortgage loan best execution range. That’s on paper, mind you, and your results will vary depending on a variety of factors. But that on paper comparison between what’s offered by FHA lenders (best execution) and what’s offered by a small number of competitive conventional lenders is not a common thing, especially when those numbers start to look similar. 30-year fixed rate conventional mortgage rates are, by many reports, more commonly found at | more...

June 8, 2016

Mortgage Rate Trends: Holding Lower

By Joe Wallace

After the recent upward pressure on mortgage loan rates in the wake of the Fed’s discussion of a possible rate hike, economic data releases have tempered that discussion and we’re seeing a short-term recovery of that lost ground. How long rates continue to improve remains to be seen, but at the moment numbers are creeping back towards where they were before all the talk of another possible rate hike. 30-year fixed rate conventional mortgages are, for the most part, at a best execution 3.625%, though it has been reported that a few more competitive lenders are offering best execution rates closer to 3.5%. That doesn’t appear to be a widespread movement, but if rates continue to improve, how long might it take before conventional rates begin to rival the current | more...

June 1, 2016

Mortgage Rate Trends: Holding For Now

By Joe Wallace

The two days before the holiday weekend, mortgage loan rates held steady or changed very little, depending on the lender. On Tuesday, the first business day of the week, we saw rates basically doing the same thing at the end of the day after some ups and downs; at the time of this writing best execution rates are where they have been, more or less, for about a week now. That means 30-year fixed rate conventional mortgages are at or near 3.75% best execution. The actual best execution number may vary depending on the lender, the time of day, etc. FHA mortgages are still in a best execution range between 3.25% and 3.5%. FHA rates tend to take longer to change than their conventional counterparts, but a dramatic move higher | more...

May 26, 2016

Mortgage Rate Trends: Sideways To Slightly Higher

By Joe Wallace

Ever since the release of the Fed minutes earlier this month there has been upward pressure on mortgage loan rates. The Fed is considering another interest rate hike sooner rather than later, and while a Fed rate hike is not a direct adjustment of mortgage loan rates, investor reaction to the hike and market activity can and often does react accordingly when the Fed acts in this way. In the last five business days there was only one day of recovery, while the rest of the time we’ve seen either “sideways” movement where rates didn’t change that much (best execution) overall but may have varied more among certain lenders. Wednesday saw rates moving sideways to slightly higher depending on the lender. 30-year fixed rate conventional mortgages had been operating in | more...

May 16, 2016

Mortgage Rate Trends: Slightly Lower After Late Week Losses

By Joe Wallace

After last week’s move into the best rates of the year (best execution), then losing ground, mortgage rates closed out the week slightly lower. That raised hopes for some that continued improvement could come in the short term. At the time of this writing, 30-year fixed rate conventional mortgage loan rates were in a best execution range between 3.5% and 3.625%. That puts conventional rates closer to the FHA range of rates than is typically seen, though FHA mortgage loan rates do tend to vary more between participating lenders. At the time of this writing, FHA mortgage rates are in a best-execution range between 3.25% and 3.5%. FHA mortgage loan rates tend to take a bit more time to reflect gains and losses in the market as they affect mortgage | more...