Yesterday the Fed announced their big plans to target the Long term securities which should have an effect on the Mortgage Rates. (The Twist)
Most are expecting mortgage rates to go down a bit, the question is how much. My opinion is that the 30 year mortgage may drop by 1/8%. I could be wrong, I am basing this from history when the Fed tried this in the 1960s with little success.
*Disclosure: I am not a mortgage banker or any kind of financial market guru – just giving my opinion – however wrong it may be. So don’t take this as any sort of financial advice.
The markets were open today and it was an ugly scene, the Dow dropped by 391 after a big drop yesterday. Fears of the European financial mess is what is reported to have sent stocks tumbling today. The 10 year bond dropped .16 today, which is a good indicator on the mortgage rates. Keep in mind, mortgage rates will trend along the 10 year treasury but not follow identically. The 10 year treasury will need to stay at a level a while before mortgage rates will trend to that level.
This graph is from the St Louis Federal Reserve Bank and was updated today.
The Red Line indicate the 10 Year Treasury and the Blue Line indicates the 30 Year Mortgage average rate.
The data for the 30 Year Mortgage is below. There is no change yet, but there will be a lag time involved:
The data for the 10 Year Treasury is below. The data only goes up to 9/20 now, but it last traded at 1.715 (9/22)
Looks to me like it is very likely we will see the 30 year mortgage rate dip a bit. Don’t know by how much, but my guess is it may dip just below 4% on the 30 year fixed.
As of Today, Edina Realty Mortgage Rates are lower than the national average of 30 year mortgages:
Today’s Mortgage Rates
The current interest rates shown below are based on a purchase of a single-family, primary residence. For current refinance rates, contact us
as of 09/22/2011 09:51 AM Central
Product Interest Rate APR Conforming1 and FHA1 Loans 30-Year Fixed 4.000% 4.181% 30-Year Fixed FHA 3.750% 4.550% 15-Year Fixed 3.000% 3.314% 7-Year ARM 2.750% 3.122% 5-Year ARM FHA 2.750% 2.908% Jumbo1 Loans – Amounts that exceed conforming loan limits1 30-Year Fixed 4.250% 4.392%
Bookmark this link to check Edina Realty Mortgage Rates at any time.
- Edina Realty Mortgage Rates: Sept 08, 2011 (craigkamman.wordpress.com)
- Rate on 30-year mortgage stays at record 4.09 percent (abclocal.go.com)
- Rate on 30-year mortgage stays at 60-year low (usatoday.com)
- Mortgages: Mortgage rates move little in latest survey (marketwatch.com)