VA Mortgage Rates News: Low, Flat Rates
VA mortgage rates for the week ending on Friday, August 29 2014, have had an interesting time. Mortgage loan rates in general have approached their lowest levels of the year at the time of this writing, and we’ve seen some interesting behavior from rates (best execution) as they move within a very narrow range.
Headlines from Europe regarding the economic situation there, the Ukraine crisis, and even the Gaza crisis have all played a role in the mortgage rate environment this summer. Domestic bond auctions, economic data releases, and other financial information have also influenced rates within the narrow range we’ve seen all summer long.
Mortgage rates have been holding at just above the four percent range (best execution) for 30-year fixed rate conventional mortgages. Currently the best execution rate–a rate offered to the most qualified borrowers with outstanding FICO scores and other financial qualifications–starts at around 4.125% or higher depending on the lender. (Your experience may vary.)
VA mortgage rates, on the other hand, have a best execution rate below the four percent range depending on the lender–some borrowers with outstanding FICO scores and other qualifications may find VA mortgage rates at 3.75% or higher depending on the lender.
Rates this week have moved lower, but some borrowers may wonder why the actual best execution number stays the same–in cases where the rates improve in smaller increments there may be a lower closing cost rather than an actual change in the mortgage loan rate. That’s important to keep in mind when you hear news of lower rates–closing costs sometime change instead of the numbers.
Some industry professionals advise VA borrowers who have not yet committed to a mortgage loan rate to lock their rates in now if their closing date is coming up in the next two weeks. Others say floating may be less risky if your loan closes later than that. But there is definitely risk involved with floating, so borrowers should make the most informed decision possible. The advice of your loan officer is never a bad thing in situations where you’re trying to decide when to commit to the mortgage loan.
Mortgage rates this week averaged the numbers reported below or higher, depending on the lender. The numbers you see below are reported as best execution rates, which assume ideal conditions such as outstanding FICO scores. Your experience may vary depending on the lender, the market, and your financial qualifications. These rates are not available to all borrowers or from all lenders.
- 30-year Fixed Rate Mortgages: 4.25% or higher depending on the lender
- FHA Mortgage Rates: 3.75% or higher
- VA Mortgage Rates: 3.75% or higher
- 15-year Fixed Rate Mortgages: 3.375% or higher
- Five-year Adjustable Rate Mortgages: Between 3.0% and 3.50% depending on the lender