Mortgage Rate News for Friday June 26 2013

The last day of an unsteady week for mortgage rates had those rates improving due to updated rate sheets that posted rate improvements left over from the previous day. This brings the week to close on a more or less “flat” note--rates did improve, but not enough to push them out of current best execution levels.

With this week done, all attention is being focused on the week ahead as it’s the source of a potential mortgage rate “spoiler” when the Fed releases its next policy statement. There is massive potential for volatility next week--will the Fed announcement send rates skyrocketing back to early July levels? Or will the announcement have the opposite result, pushing the rates down below the low-to-mid four percent range we’ve seen in the last month? It’s equally possible that rates could remain somewhere between those two extremes, so there’s no way to call next week’s rate behavior. “Wait and see” is the mantra, but some market watchers are nervous about the prospects.

Some market watchers are calling the current rate environment an upward trend--in spite of recent gains--and advise home loan applicants and refinance loan applicants to prepare accordingly unless there’s a significant development that could break the current upward trend decisively.

Is that possible next week? We’ll have to wait and see, but it’s definitely not safe to bet against higher rates in the short term, regardless of what has happened in earlier days of the month. Rates may have fallen steadily over a few days here and there, but the upward pressure and volatility always manage to return as of late. It’s best to make the most informed choice you can and commit on the day you feel rates are most favorable, rather than hoping for a sustained recovery in the short term--it simply might not materialize in time to help those who need to make a decision soon.

Here are the mortgage loan rates for Friday July 26 2013. The numbers here are best execution rates--they may not be available to all borrowers or from all lenders. Your experience may vary depending on FICO scores or other qualifying criteria.

30-year fixed rate mortgages: 4.5%
VA and FHA mortgages: 4.25%
15-year fixed rate mortgages: Between 3.625% and 3.75%
Five year adjustable rate mortgages: Between 3.0% and 3.25%

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