Mortgage interest rates for USDA loans and other home loan programs have remained low this summer. Low as in…near historic low levels. Interest rates across the board are plummeting following Britain’s vote to leave the European Union last week. Mortgage companies began slashing their rates last week. According to the lenders surveyed, the 30-year mortgages have been the beneficiary of the most discounting.
Brexit shook the stock markets as investors ran to bonds. As the 10-year Treasury gains favor, its price rises, but the yield falls – and mortgage rates are quickly approaching record lows.
Will these low rates go down even more in July & August? According to Fannie Mae’s most recent National Housing Survey, half of borrowers think mortgage rates will be higher one year from today, and another 47% believe rates will hold near their current range.
The survey, which covers 1,000 households, and is to monitor changing buyers attitudes toward mortgages and housing nationwide. Only 4% of those surveyed expect mortgage rates to drop.
USDA Interest Rates, Closing Times July 2016:
As of July 1st 2016 – the government loan rates are currently in the low 3% range. This includes USDA Rural Housing, FHA and VA loans – purchase and refinance transactions. Some important things to note:
- These interest rates assume good credit FICO – over 720. Borrowers with FICO scores, especially those lower than 680 should expect higher rates.
- Interest rates assume no added “points” or added fees outside normal closing costs. However, borrowers always have the options of paying added point(s) in exchange for lower rates.
- Rates assume normal 30 year fix rate loans, 30 day lock terms.
Homeowners that currently have a USDA Rural Development loan with a higher interest rate can learn more about the cost saving USDA Streamline Assist refinance. The new program makes refinancing easy and allows for unlimited loan to value, no appraisal, home inspection or minimum credit score requirement. *This only applies to this special refinance program, NOT the standard USDA 502 Guarantee purchase loan.
USDA Closing Turn Times July 2016:
USDA turn times can vary depending on the home purchase state. As of July 2016, most states are between 3-7 business days. Note: this is the time is takes USDA Rural Housing to issue a loan commitments AFTER the lender has competed the initial underwriting, appraisal, etc. Buyers should expect the complete closing process to take about 30 days depending on purchase location state. If you have questions about a USDA already in process with a lender or bank, please contact them directly for latest status.