VA loans beat other rates for 27th straight month

by Ryan Smith29 Aug 2016
While it was projected by some that mortgage rates would be approaching 5% by the start of 2016, prevailing economic conditions have conspired to keep rates low – and VA loan rates are routinely beating practically everything else out there.

VA mortgage rates beat rates for comparable mortgages in July for the 27th straight month, according to Ellie Mae. VA rates beat out rates for mortgages through the FHA, Fannie Mae and Freddie Mac.

And VA mortgage rates have beaten conventional mortgage rates by a quarter of a percentage point or more on any given day since Ellie Mae started tracking data on the subject, according to The Mortgage Reports. Gaps between VA and conventional loans have been as wide as 150 basis points for some borrowers.

FHA mortgage rates, on the other hand, have beaten conventional rates by only 15 basis points on average.

VA loans also get approved more easily than other loan types, according to The Mortgage Reports.