VA Loans Blog

The Surprising VA Loan Rates

June 30th, 2017 11:19 AM by Joan Rusco

The recent Fed rate increases are barely affecting your mortgage rate. In a previous post we suggested that recent Fed rate increases may actually decrease the rate available on a VA Loan. That prognostication proved to be true. 

When the Fed began their rate increases about six months ago we, at VALoansMN, were seeing rates at around 4%. The Fed recently raised ithe short-term rate (Fed Funds Rate) for the 3rd time and where are we now? You may be surprised.

As we discuss mortgage rates we must take some time to caution against expecting a certain rate simply because of our generalizations about VA Loan rates in Minnesota or what you see on TV and hear on the radio.  Rates are determined by a number of factors. There is NO ONE RATE for everyone. If you have a long history of borrowing money using credit cards, car loans and home loans and you carry very little balance on these loans (except for mortgages), you pay on time, then expect a better rate.  If, on the other hand, you’ve had some credit trouble, maybe missed a payment or two in the past year, carry higher credit card balances, then the rate available to you may be higher than you expected. However, VA Loans are more forgiving than conventional mortgages so don’t be afraid to call us at VALoansMN and tell us what you want to accomplish. Let’s return to what’s happening with VA mortgage rates in Minnesota and the Dakotas.

As mentioned above we saw VA Loan rates rising to around 4% a few months ago. Since those Fed rate increases rates have actually backed off a bit.  We dug into the numbers from a year ago and in July 2016 VA loan rates were hovering around 3.25%. Today they are just over a quarter point higher at 3.675%. As we repeatedly post here on the VALoansMN blog we are looking into a window of opportunity not seen in decades.  The window is still open. We don’t know when it will change but be assured, it will change. Rates will go up. It’s impossible for us (or anyone else) to predict when that will happen and to what degree.

Remember these points; 
Rates have moved very little in the past year despite Fed funds rate increases
There is NO ONE RATE for every VA Loan borrower
This is a great opportunity to buy or refinance your home

We think VA mortgages are perhaps the very best loan product on the market today for numerous reasons. We’ve outlined those in earlier posts. Don’t hesitate to call Brad today at 612.240.9922 and give him a chance to help you realize your dreams. 


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