Are FHA interest rates going to go up or down this week for a 30 yr. fixed?

Asked by Eric Guerra, Riverview, FL Mon Feb 18, 2008

My fiance and I signed a contract on an inventory home on Friday Feb 15, but left the interest rate on the mortgage contract as floating. At the time, FHA's 30 year fixed rate was 6.25%, when 2 weeks ago it was 5.75% which looked much better when we got the estimate. My question is, when the markets open up tomorrow, do you think the FHA interest rates will be going down, up, or stay level through this week? We have until Friday to lock in a rate, and I am gambling that the rate will go down to at least 6% this week. Obviously everyone bought a bunch of bonds when Bush signed the FHA/mortgage bills which drove the interest rate up, but I think the market cannot bear the high rate and will drop again very soon (this week). Your thoughts?

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10
Jim Johnson, , 78233
Mon Feb 18, 2008
BEST ANSWER
I have not been tracking FHA rates daily, but I just looked and they were at 5.97% in San Antonio, Texas. Take a look at http://www.bankrate.com/aff/default.asp and input your zip code to see what the current rates in your area are. Then go to http://www.bankrate.com/aff/rate/brm_mtgsearch.asp?refi=0 and run your numbers through the mortgage loan search to see what applies to your situation.
2 votes
Tony Coppa,…, , Virginia Beach, VA
Tue Feb 19, 2008
Bonds are being pressured already today and althought there are no big economic reports, the crucial Consumer Price Index is due tomorrow at 8:30am. While a tame read on inflation per this report would likely move bonds higher (and rates lower) an ugly report on inflation would quickly force bond prices down and rates would go higher. Watch the financial news in the morning and be prepared to lock if the CPI report contains inflationary language.
1 vote
Tony Grego, , Indianapolis, IN
Mon Feb 18, 2008
Eric,
I am a Indiana Mortgage Broker and I am not licensed to do a mortgaeg in Riverview. I say this so you know I have no financial gain whatever you do. As you know rates have increased about 1/2 over the last 7 - 10 days. Nothing is on the horizion this week to indicate that rates will drop. I (and my company) is suggesting everyone to lock. Remember with FHA as long as your payments are on time you can refinance after 12 months of on time payments with no apprasial, credit, or assets. It is a great deal
Good Luck
Tony Grego - Indiana Mortgage Broker
1 vote
Robin Silver…, Mortgage Broker Or Lender, Garden City, NY
Fri Feb 5, 2010
People will keep answering this question, even though it is almost 2 years old, and this is the age-old question, where are interest rates going. What is really interesting, because although many of us have good memories, probably not good enough to remember exactly where rates were 2 years ago, it is good to read your post now. At that time, as you said, rates were in the 5.75% to 6.25% range. If you would have asked me at that time where they would be today, I would have told you 7% or maybe even higher. As we all know, that is not the case, and rates in fact are much lower than they were when Eric posted this message. 5% right now is about the going rate on FHA.
When it comes to interest rates, no one has a crystal ball, and our bi-polar economy is making things seesaw every day.
0 votes
Jeff Hutchis…, , Chicago, IL
Fri Feb 5, 2010
Rates can change multiple times/day depending on buying and selling in the mortgage backed securities market. These securities are bonds comprised of mortgages (a pool of same types of mortgages) and securitzed through Fannie Mae or Ginnie Mae. Check out my blog post detailing how these determine pricing on mortgage rates.

http://www.trulia.com/blog/jeffhutchison/2009/09/current_fan…

Please visit my website for current fannie mae rates and current fha rates. thanks

http://www.mychartermtg.com/current-FannieMae-rates.html

http://www.mychartermtg.com/current-FHA-RATES.html
0 votes
Todd Engala, , Riverview, FL
Wed Mar 5, 2008
Congrats Eric,

Which community did you go with Avalar or Oak Creek? It was nice talking to you and I hope to hear from you soon.

Thanks
0 votes
Alma Kee, Agent, Tampa, FL
Wed Mar 5, 2008
You can check the wholesale rates on: http://www.mtgprofessor.com/ This site also has a wealth of info on what to look for when chosing a lender. Just make sure the builder's cash incentive to you for using their lender allows you to get a fair interest rate.
Web Reference:  http://www.soldontampa.com
0 votes
Gary De Pury, , Pasco County, FL
Thu Feb 21, 2008
This is a great question because it asks for and receives qualitative data. Some of the answers will turn out to be right and others naturally will be ....less right...! Since Rates are an educated guess.

What you must look at are the trends in the bond market and the stock market to determine what rates 'might" do. I for one am going to check back in a week and see who had the best guesses. (Then hire them)


Gary De Pury
Broker-Owner
Bay Vista Realty & Investments, Inc.
Tampa, Florida
Chairman, Communications Committee
Director, Florida Association of REALTORS®
0 votes
Chris Murphy, , San Diego, CA
Thu Feb 21, 2008
they're going down again....make sure to check in with your lender.
It seems the market is taken a turn for the worse, and the bonds are going down.
Rates are determined by mortgage backed securities (MBS), which act like the 10yr bonds.
0 votes
Antonio, Agent, Tampa, FL
Mon Feb 18, 2008
I do not have a crystal ball :) but I've heard they might lower it........ again, don't take my guess, rather think that it's not how high the rate might be, but rather the lenght that changes everything, for istance, try make at least 1 extra payment in 12 month period and you'll see a dramatic change in interest and time.
I personally pay $100 a month and my mortgage is due in 22yrs rather than 30; therefore having a saving.
best luck.
Web Reference:  http://www.hothomespot.com
0 votes
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