FHA Interest Rates
The FHA interest rate improved again last week.
Light volume and steady gains all week. Then the better-than-expected jobs report on Friday took back much of the week’s gains.
Rates were best Thursday afternoon, but it was still the second consecutive week in which the FHA interest rate fell.
FHA Loan Rate Predictions For This Week
More volatility.
There are not many economic reports with just Consumer Confidence and Retail Sales due out. A status quo for rates would be great. Any change is significantly more likely to drive rates up than push them down.
The ticking clocks for this week are two-fold and completely outside of normal mortgage rate factors:
- The end of the Fed’s support of the mortgage bond market
- Potential resolution on the EU / Greece bailout discussions
We’ve had almost all of $1.25T supporting mortgage rates for the past year. That’s ending. The Fed has been a buyer of epic proportion. Rates will go up if no one else has an appetite for that many mortgage bond investments.
We’ve had a huge influx of foreign money in the past few weeks. It’s helped push the FHA mortgage rate lower and stocks higher in the same week. That’s not normal. That’s because foreign investors felt the US was safer than anywhere else. If the Greece issue finds resolution, expect rates to jump.
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