Well, interest rates have been suprising me in the last few days. I expected to see them increase for a couple weeks. However, even though the Dow is at a 3 year high right now, we are dropping below 5% on FHA, VA, USDA, and other programs. Every person needing a loan is unique and will have a different interest rate. The rate will be mostly based on credit score and down payment. Right now, I am working through 2 USDA loans that are in flood zones. Trust me when I say this, USDA is not up to speed on the new requirements just quite yet.
The key to originating mortgages right now is to know you are working with someone who will do their homework UPFRONT so that major blow ups will not happen.
The major problem right now is the trickle down effect by the mortgage agencys such as FHA, FNMA. They issue what guidelines they will purchase loans under but then the major servicers like Wells Fargo, BOA etc will 'overlay' those agency guidelines with more restrictive guidelines that are always changing. ALWAYS.