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VA Mortgage Rate News For Friday August 22, 2014

August 22, 2014

VA Mortgage Rate News For Friday August 22, 2014


There are many reasons why mortgage rates fluctuate. The release of economic data that suggests weakness in the economy can influence rates and push them lower. Conversely, when economic or jobs data indicates improvement, rates can and sometimes do move higher as a result. But other factors can push rates higher or lower, too. We found a good example of that recentlyРwith latest mortgage rate news showing mortgage rates moving lower based on investor reaction to world headlines.

A week ago last Friday, we saw mortgage rates hit their lowest levels in two months. The move was attributed to how investors reacted following news of developments in the Russia/Ukraine situation. As the conflict changes or escalates in the region, investors may move away from stocks and into bonds as a temporary measure to protect investment dollars. This can and does influence mortgage rates.

This week, rates bounced higher after that sudden drop over world headlines. That is a common factor in such rate changes; the global headlines that push rates lower one day suddenly are no longer a factor for investors the next. The gains can vanish as quickly as they appear.

In fact, this week markets seemed determine to “correct” for last Friday’s gains, and new headlines this week about a de-escalation in the Ukraine situation forced rates higher. But these news stories and investor reaction to them were not the only factors that influenced mortgage rates–the Fed released its minues from the most recent meeting–notes that indicate a more optimistic tone at the agency, which had the effect of putting more upward pressure on mortgage rates. In general, if there’s good news for the economy, there can potentially be bad news for mortgage rates.

Some sources report very little change for “best execution” VA mortgage loan rates, while others report typical fluctuations among lenders within a certain range of mortgage rates. VA loan rates do tend to vary more from lender to lender, but the average “ideal” mortgage loan rate for well qualified borrowers tended to hover in the 3.75% range this week in spite of all the headlines, the changes, and the upward pressure. Conventional borrowers may certainly have noticed more changes in the last seven business days than VA borrowers.

Mortgage rates this week tended towards the following trends listed below. Please note that the numbers reported here are listed as “best execution” mortgage loan rates and assume ideal conditions including excellent FICO scores, loan repayment history and other financial qualifications. These rates are not available to all borrowers or from all lenders. Your experience may vary.

30-Year Fixed Rate Conventional Mortgage Loans: Between 4.125% and 4.3%
VA Mortgage Rates: 3.75% or higher depending on the financial institution
FHA Mortgage Rates: 3.75% or higher, depending on the financial institution
15-Year Fixed Rate Mortgages: 3.25% or higher
5-Year Adjustable Rate Mortgages: 3.0% or higher

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