This ARTICLE On News Of Strong Dollar Pushes Mortgage Rates Lower Was PUBLISHED On April 11th, 2018
Economic News Of Strong Dollar Pushes Mortgage Rates Lower:
- Mortgage rates have been all over the map since the start of 2018
- However, overall, mortgage rates have continued to drop and are now at a 24 month low
- Mortgage rates on conventional loans are currently at an all-time low for 2018
- Conventional mortgage rates are not just the only mortgage rates that are dropping
- FHA, VA, USDA, and Jumbo Mortgage Rates are all following the conventional mortgage rates drop as well
- The drop in mortgage rates is not just a plus for homebuyers but there is a record number of refinancing mortgages due to the drop in mortgage rates
- Mortgage rates are now at a 24 month low and it seems like the Federal Reserve Board’s mortgage rate increase this summer is likely not going to happen
- This past quarter experienced a record number of refinance mortgage loans in the past 21 months
In this article, we will discuss and cover the News Of Strong Dollar Pushes Mortgage Rates Lower.
News Of Strong Dollar Pushes Mortgage Rates Lower
30 year fixed rate conventional mortgage rates for prime mortgage loan borrowers are at a 24 month low, below the 4.0% mark.
- 15 year fixed conventional mortgage rates are hovering around the 3.0% mark for prime borrowers
- Prime mortgage borrowers are borrowers who have at least a 740 FICO credit score and who have at least 20% down payment to put down on a home purchase
- Or homeowners with at least an 80% loan to value
- When the Federal Reserve Board met in March 2018, they came to the conclusion that the Fed Funds Rate should remain at zero percent for longer than they anticipated to be which was a plus for Wall Street and the mortgage industry
- These low mortgage rates are for prime borrowers only
However, mortgage loan borrowers with higher credit risks will also benefit from these low mortgage rates.
Adjustments On Mortgage Rates
Mortgage rates reported in the media is the national average mortgage rates throughout the country.
- Some regions of the United States may have higher or lower rates than other regions
- For example, California had the lowest mortgage rates in the country, regionally, followed by the state of Washington and Oregon
- The highest mortgage rates adjustments were for mortgage loan borrowers in Alabama, Georgia, and Florida
- Property types have adjustments on mortgage rates
- The best possible mortgage rates are offered in single-family homes
- Higher mortgage rates adjustments are on condominiums, two to four units, manufactured homes, since they are higher risk
FHA mortgage rates, VA mortgage rates all have followed the conventional mortgage rates downward trend as well.
Factors Affecting Mortgage Rates
Many mortgage loan borrowers wonder what determines mortgage rates. Any bad economic news on a strong dollar pushes mortgage rates lower. The sole factor that affects mortgage rates is your credit scores. To be considered a prime borrower, you need a credit score of 740 FICO or higher. Every 20 FICO point decrease in your credit scores, you will get a price adjustment hit. Minimum credit scores to qualify for a conventional mortgage loan is 620 FICO. Conventional loan borrowers with a 620 FICO credit score will be hit with the highest mortgage rates. Prior bankruptcy, foreclosure, deed in lieu of foreclosure, short sale, collection accounts, charge offs, or prior bad credit on your credit report has no bearing on your mortgage rates. Two other factors that affect your mortgage rates are the type of property and the loan to value. The reason property types affect mortgage rates is that due to risk. A condominium or multi-unit property is considered a riskier investment to the mortgage lender than a single-family home. Primary owner occupant homes have the best lowest mortgage rates followed by second home financing and investment home financing. Again, mortgage lenders consider that a mortgage loan borrower is less likely to default on their primary homes than they would on a second home or investment property.
April 11, 2018 - 3 min read