That’s a question that inevitably comes up when talking about VA mortgage rates. Loan officers follow economic reports and can subscribe to various rate services that provide VA interest rate opinions but regardless of the source of information, it’s really only speculation. Are rates really that important? Should the movement of an interest rate stop you from taking out a VA mortgage loan?
It’s true that following economic trends and speculating about future data is something that’s practiced every day by VA mortgage loan officers. Economic reports indicate the strength of the economy or if the outlook is somewhat jaded. For example, a strong unemployment report can indicate that the economy is on the mend and the Fed will start to raise interest rates. Yet one strong report can be countered with the next set of numbers. The fact is that while there is no shortage of economic pundits out there no one knows the future.
When you ask a loan officer what VA rates are going to do the loan officer can give you an opinion but if the loan officer tells you where rates are headed you should be wary of the advice. A loan officer can say, “I’m not sure but rates have been on a decline for the past month” or something similar. Yet too often borrowers can get fixated on rates and not pay attention to the fact that the rate represents a monthly payment. And that means rates are important, especially in terms of qualifying for the VA loan amount you want.
No one knows where rates are headed but if rates are comfortable to you today then you should take advantage of them. If rates do move lower later on and it makes sense to refinance, you can always take advantage of the VA streamline refinance.