FHA Loan Rates Moving Lower with Average Mortgage Rates
Posted on | August 28, 2009 | No Comments
FHA loan rates are historically give to lower income Americans who could not afford a home otherwise. With this in mind, FHA loan rates are often a little bit higher than average mortgage rates but they move in the same direction. Each FHA loan rate is similar in the fact that the borrower must submit their financial information before they can get an exact interest rate. That being said, keeping an eye on mortgage rate trends and average mortgage rates can help you determine when FHA loan rates are low.
Average mortgage rates have worked their way below 5.1% and could be on their way under 5% in the near future if we see a break down in the 10 year treasury rate yield. The 10 year yield had been in a strong uptrend for quite some time until the beginning of this month when the yield broke through its 50 day moving average and now seems to be down trending. This is great news for average mortgage rates, especially since there are almost at the 5% level.
If you have been thinking about refinancing your FHA loan or any home loan at all it might be a good idea to go ahead and get your mortgage application ready to go so you do not get caught in the hysteria of mortgage rates below 5%. The last time we saw average mortgage rates below 5% there was a swarm of mortgage applications submitted and some borrowers did not even get looked at for several weeks. You do not want to be the borrower that is on the bottom of that stack of applications.
There are many mortgage lenders out there advertising mortgage rates under 5%. There are also advertisements for low FHA loan rates. Use these resources to see what kind of interest rate you can get on your home loan. Many people are weary of these ads because they think they are just trying to get their business. Well, that may be the case, but you do not have to commit to anything and if you make a simple phone call you can always just hang up the phone.
Ultimately, now is one of the best times in history to refinance your home. Mortgage interest rates are near historical lows and we have a president that is urging all mortgage lenders to lend money to each and every American. Please realize that your financial position will greatly determine your mortgage interest rate but that should not deter you from getting out there and actually contacting some lenders.
Author: Heather Best
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