Currently viewing the tag: "fha loan"

FHA Mortgage Rate Predictions = Irrelevant

On March 17, 2011 By

FHA interest rates have been on an absolute tear for the past few days.  The loan rate is controlled by trading on Wall Street, not the FHA.   HUD is “the FHA,” and their job is to maintain the underwriting standards.  For the most part, they only control who can get a loan, not the rate.

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Today’s FHA Interest Rates v. November’s

On February 25, 2011 By

FHA interest rates don’t exactly follow the Freddie Mac PMMS results, but they’re close enough that we can use them for comparison.

Yesterday’s survey had the 30 Year Fixed at 4.95% and had it at 4.30% back in November.

If you look at that on a normal FHA loan, 3.5% down, the payment difference is fairly signficant [...]

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2010 FHA Mortgage Rate Predictions

On January 15, 2010 By

Mortgage rates hit all-time lows on December 1st and shot right back up during the month of December.   We came into 2010 with mortgage rates just trading higher one day, lower the next.

We’re starting to get some direction this week.  The FHA 30 Year Fixed rate has moved back to 5% and is now [...]

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Fed Indirectly Helps FHA Loan Rate

On December 17, 2009 By

There is no correlation between the Fed Funds Rate and mortgage rates.  There is a strong correlation between the Federal Open Market Committee’s statement and mortgage rates.

The FOMC meeting yesterday was the big news item of the week.   The tone was balanced and mortgage bonds have responded well today.  Rates are lower by .125%.

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FHA Interest Rates Back to 5%

On December 16, 2009 By

It’s been an interesting week for the FHA loan rates.

We’ve had every piece of bad news that mortgages could hear:

The economy is rebounding.  We’re seeing expansion in nearly every key metric. Housing is on a roll.  This also has negative signals for the FHA interest rates. Inflation is starting to creep up.  Inflation [...]

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FHA Interest Rates Recovering

On December 9, 2009 By

It’s been a crazy few weeks with mortgage rates charging all the way to all-time lows and then suffering a pretty ugly sell-off last week.

The FHA loan rate has shown surprising resilience and has now fought back since Monday to get back below 5%.

For first time home buyers who have a seller credit [...]

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FHA Loan Rates Improving Today

On December 7, 2009 By

Last week saw rates take a bruising after chasing all-time lows right near Thanksgiving.  The FHA interest rate was pushed higher, but still opens this week under 5%.

It is hard to keep in context how low mortgage rates are.  We went up .25% and are still below 5%.  That’s great news today.  It’s scary [...]

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Interest rates starting to correct

On December 2, 2009 By

We’re seeing some follow-through from yesterday’s big sell-off.  Presently, the GNMA 4% is off about 20 basis points.  That might or might not be enough to move rates a full .125%.

Gold hit another record, now up to $1,207/oz.

The ADP jobs report came in today.   The report was worse than expected in terms of [...]

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FHA Loan Rate Hovers at 4.75%

On December 1, 2009 By

We’re starting to see a reversal today as the GNMA bond is under pressure.  The Dubai mess is unwinding and appears to be regional.  We’re getting blistering numbers in the housing market.  Add to this the fact that mortgage bonds appear to be overbought, we’re ripe for a reversal.

We’ll start today at 4.75% on [...]

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Switching to 4.0% Coupon

On December 1, 2009 By

This is great news.  When we look at interest rates, we track a GNMA mortgage bond.

Recently, we’ve been using the 4.5% coupon.  With rates dropping so rapidly, we’re switching over to the 4.0% coupon as that is more closely related to the security that lenders are using to set FHA interest rates.

Mortgage bonds [...]

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