Prospective borrowers with strong credit are locking in mortgages this week at the lowest rates in more than a year, loan officers and lending executives told HousingWire.
A sample of more than a dozen industry professionals said they were quoting most borrowers in the high 5% to low 6% range on government loans and in the mid-6% range for conventional mortgages. Quotes vary based on credit scores, points and other factors.
This generally matches up with data from Mortgage News Daily, which looks at marketed rates for strong credit profiles. On Friday, it recorded conventional 30-year mortgage rates of 6.40% and 15-year conventional rates of 5.89%. Fixed rates through the Federal Housing Administration (FHA) were at 6.10% and those through the U.S. Department of Veterans Affairs averaged 6.12%. Some rates were down nearly 50 basis points in a single week.
In just the past day, loan officers should have seen their pricing improve between 25 and 40 basis points on government loans, and by 20 to 60 basis points on conventional scenarios, said Rick Roque, executive vice president of retail at Sierra Pacific Mortgage. The rate declines “means better pricing to consumers, incentivizing them to take advantage of approximately half a percentage point in rate improvement in the market,” he said.
See the full report from HousingWire here.
