Prospective borrowers with strong credit are locking in聽聽this week at the lowest rates in more than a year, loan officers and lending executives told聽.
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聽, 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聽Federal Housing Administration聽(FHA) were at 6.10% and those through the聽U.S. Department of Veterans Affairs averaged聽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聽, executive vice president of retail at聽Sierra Pacific Mortgage. The rate declines 鈥渕eans better pricing to consumers, incentivizing them to take advantage of approximately half a percentage point in rate improvement in the market,鈥� he said.
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