Articles Tagged With: Interest Rates

May 11, 2016

Mortgage Rate Trends: Moving Lower

Mortgage loan interest rates have improved this week, hitting new lows that put conventional mortgages into a new range of rates (best execution) that are now, on paper at least, overlapping the current best execution FHA mortgage rate range. This development has encouraged some industry professionals to begin speculating as to whether the new lows are the “floor” of the improvements or whether new lows could be reached (however short-term they may be). Time will tell whether that speculation has any merit, but rates could easily be pushed in the opposite direction depending on circumstances. 30-year fixed rate conventional mortgages are at the time of this writing in a best-execution range between 3.5% and 3.625%. That range is close to the FHA mortgage loan best execution range, which at the | more...

May 9, 2016

Mortgage Rate Trends: Moving Lower After Jobs Report

By Joe Wallace

Friday the much-anticipated Employment Situation Report had data that wasn’t as favorable as expected. That helped rates further recover some losses seen in late April, resulting in some market watchers to declare Friday’s gains as the “lowest in three years” (best execution) for some financial institutions. On Friday, 30-year fixed rate conventional mortgages were, best execution, in 3.625% territory. That’s down from a late-April range with 3.75% at the upper best execution end. FHA mortgage rates remain in a range between 3.25% and 3.5%. FHA rates tend to vary more among participating lenders, so it is a very good idea to shop around for the best rates. As always, best execution rates are not available to all borrowers or from all lenders. Your access to rates like these depends greatly | more...

April 27, 2016

Mortgage Rate Trends: Holding For Now

By Joe Wallace

We’re writing more this week on mortgage loan interest rate trends due to the upward movement and the potential for this week’s economic data releases (and scheduled Fed statement) to influence those rates. After dropping to year-long (or greater) lows, rates moved higher, but not yet into the four percent range we’ve seen in the past. At the time of this writing (ahead of the Fed statement due out on Wednesday) 3o-year fixed rate mortgages were holding at a best execution 3.75%, though some holdouts may still be offering rates a bit lower for now. FHA mortgage rates are still in a range between 3.25% and 3.5% best execution. If the Fed statement has investors reacting in ways that put upward pressure on mortgage loan rates, we could see that | more...

April 26, 2016

Mortgage Loan Interest Rate Trends: Higher Ahead of Fed Statement

By Joe Wallace

Last week on Friday, rates moved higher. The week ended with 30-year fixed rate mortgages in a higher range between 3.625% and 3.75%, and FHA rates in their own new range between 3.25% and 3.5%. On Monday, things stayed more or less the same, though market watchers say it could be a difficult week due to a variety of factors including the Fed Statement due to be released on Wednesday. (The Fed meets on Tuesday, but releases a statement the following day.) That statement has great potential to move rates. According to a report by Marketwatch.com, the Fed is expected to keep the option for a June interest rate hike on the table. In the past any talk of rate hikes is enough to bring knee-jerk reactions by investors over | more...

April 19, 2016

Mortgage Loan Interest Rate Trends: Holding At Recent Lows

By Joe Wallace

On Monday, mortgage rates closed out the trading day holding at recent lows. There are some important economic data releases coming and there’s a meeting of the European Central Bank scheduled for Thursday–all, some, or none of these may affect rates depending on investor reaction to data and announcements that follow these events. Also, rates can also be influenced by breaking news or unexpected events that cause investors to react in ways that influence mortgage loan interest rates. However, those rates are low at the moment and holding there, but factors like the ones mentioned above could put upward pressure on rates, making the “lock or float” choice more complicated, especially for those with closing dates in the next month or so. At the time of this writing, 30-year fixed | more...

April 13, 2016

FHA Mortgage Rate Trends: Holding Steady

By Joe Wallace

Mortgage rates held steady on Tuesday, ahead of Wednesday’s Retail Sales Report and Thursday’s Consumer Prince Index report. These scheduled economic data releases can and do affect mortgage rates depending on investor reaction to the data in the reports; borrowers who are hoping for lower rates this week will have to contend with these releases as a potential spoiler for rates moving lower in the short term. Mortgage rates seem to be at the bottom of a range at present, so holding steady is good news, but upward movement (however small) is always likely depending on scheduled economic data releases, breaking news, or other factors that may affect the markets that influence mortgage loan rates. At the time of this writing, 30-year fixed rate conventional mortgages held steady at between | more...

April 11, 2016

Mortgage Rate Trends: Near Best Levels All Year?

By Joe Wallace

With only one day last week with rates moving upward, we’ve seen mortgage loan interest rates hit territory better than we’ve seen for a good portion of 2016. Much of last week was either improvement, or holding steady following that improvement. On Friday rates didn’t move downward, but they definitely held steady. 30 year fixed rate conventional mortgage rates with some very competitive lenders were as low as 3.5% best execution, with many more offering a best execution 3.625%. FHA mortgage loan rates remained at 3.25% best execution, having moved out of a previous range with 3.5% at the top end (best execution). It’s not clear whether this rate will become a new comfort zone for FHA loans or if we’re seeing a short term trend only. As always, best | more...

April 4, 2016

Mortgage Rate Trends: Decisively Lower After Jobs Report

By Joe Wallace

Friday, much attention was on the Employment Situation Report, which has in the past influenced mortgage rates based on investor reaction to the information in that report. Ahead of that report, it seemed risky to float, or delay making an interest rate lock commitment with a lender in hopes of seeing rate move lower. Floating is never risk-free, and ahead of a scheduled economic data release such as this, an elevated risk is present. But on Friday those who chose to float in spite of the risk were rewarded as rates moved lower. 30-year fixed rate conventional mortgage loan interest rates were reported at a best-execution 3.625% on Friday, ditching the previous range between 3.625% and 3.75%. FHA mortgage loan rates have not moved out of their recent comfort zone | more...

March 31, 2016

Mortgage Rate Trends: Recovering Lost Ground

By Joe Wallace

Mortgage rates have reclaimed some lost ground in the wake of a speech this week by Fed chair Janet Yellin. The Fed is still committed to “carefully” raising interest rates–a gradual increase as the U.S. economy continues to improve. The markets that affect mortgage rates has responded to this (among other factors) and we’re seeing mortgage rates starting to move lower accordingly. 30-year fixed rate mortgages were reported moving into a best execution range between 3.625% and 3.75%. FHA mortgage rates haven’t moved out from the comfort zone we’ve been discussing for some time so in spite of the conventional move we still see FHA mortgage rates at a best execution range between 3.25% and 3.5%. FHA rates vary more among lenders than their conventional equivalents so your experience may | more...

March 28, 2016

Mortgage Rate Trends: Higher Before Easter Weekend

By Joe Wallace

Last week, mortgage rates were on an upward trend, moving higher in small increments three out of the four business days before the long weekend. On Wednesday there was a glimmer of recovery, but on Thursday rates were back on the move upward, eliminating the previous range of rates for conventional mortgages and consolidating into one fixed-rate best execution number. 30-year fixed rate conventional mortgages had been in a best execution range between as low as 3.625% (the previous Friday) and 3.875%. We closed out the week with rates moving into a best execution 3.75% depending on the lender. In some cases borrowers may notice changes in closing costs rather than actual rates, but suffice it to say that it’s been a bumpy road for these rates lately. FHA mortgage | more...