VA Mortgage Rate Trends For The Week of September 8 2014
VA mortgage loan rates, best execution-wise, stayed at their now long-reported “comfort zone” of 3.75% for the best-qualified applicants (depending on the lender and other circumstances). But that doesn’t mean VA mortgage rates didn’t experience upward pressure this week due to a variety of factors. Rates did indeed move higher this week and applicants may have experienced these higher rates in the form of adjusted closing costs rather than actual changing numbers.
But since VA mortgage rates tend to vary more between lenders than their 30-year fixed rate conventional counterparts, some borrowers may well have seen actual higher rates. Technically speaking, mortgage loan rates have moved to their highest levels since early August according to many sources, but we’re still seeing mortgage loan rates fluctuate within a narrow range. There’s no severe rate change happening at the present time, just small but near daily increases.
Market watchers blame this on issues associated with bond market performance, which can and does affect mortgage loan rates depending on circumstances. Some are looking to next week when the Fed will issue a much anticipated policy statement that can, and has in the past, affected mortgage loan rates. The announcement is expected to bring some reaction from the markets that directly affect mortgage loan rates, but what that reaction is depends on the tone of the Fed statement.
We could see rates move into a “defensive mode” ahead of Wednesday. It’s probably unrealistic to expect and significant drop in rates between now and Wednesday’s Fed announcement, unless some kind of breaking news event happens that affects investor behavior in a significant way.
Borrowers on the fence on whether to lock in a mortgage loan interest rate commitment now, or to “float” and hope for better rates should know that some industry professionals advise locking in the short term–there is plenty of risk for higher rates, especially after the Fed announcement on Wednesday when markets are sure to react quickly to the information released then.
Here are the mortgage rate averages for the week of September 8 2014. These numbers are published as best execution averages and are not available to all borrowers or from all lenders. Your access to these rates depends on the availability of a participating lender, your FICO scores and other financial qualifications, and other factors. Your experience may vary.
30-year Fixed Rate Mortgages: Between 4.125% and 4.25% depending on the lender
FHA Mortgage Rates: 3.75% or higher depending on the lender
VA Mortgage Rates: 3.75% or higher depending on the lender
15-year Fixed Rate Mortgages: Between 3.25% and 3.375% best execution
Five-year Adjustable Rate Mortgages: Between 3.0% and 3.50% best execution, depending on the lender