The first three quarters of 2017 have proven to be a relatively good for mortgage interest rates despite widespread expectations that they would rise throughout the year with the Federal Reserve announcing their plans to raise short term rates three or four times in 2017. In fact, the Federal Reserve has raised short-term rates twice since last December; although each time, mortgage interest rates have declined immediately after.
The biggest question is how much longer this trend will last. Mortgage rates have not been immune from brief corrections back toward higher levels, and each correction causes concern that this time rates will really go up. However, mortgage rates have reached new lows in April, June, and September and continue to hover at or below 4% for the conventional 30-year fixed mortgage, for people with high credit scores. FHA and VA rates are in the mid-3% range for the same 30-year fixed rate term. Fixed 15-year loans are in the low 3% range for people with good high credit scores.
Although rates have been rising since early September, they would have to move even higher before we would consider a change in the bigger picture theme.
Looking out over the next few months the most likely external factor that could impact rates are the economy, legislative action such as a the passage of tax reform and continuing conflict in various parts of the world. Each of these variables have impacted mortgage rates at different times in 2017.
Although oversimplified, bad news and political instability are generally good for mortgage interest rates. While economic growth and the adoption of pro-growth business policies and uncertainty in the financial markets tend to make mortgage interest rates rise.
Click on the link for an overview of current interest rates, http://spectra17.wpengine.com/interest-rates/