The 30 Year Fixed Rate Mortgage is still at record low levels. They had dipped just below 4% a couple of weeks ago, and now they have trended a bit higher. There was a lot of speculation that the rates would drop as a result of Operation Twist, however if you look at the graph below it doesn’t appear to me like it has had much impact on rates. The speculation was that Operation Twist would lower the 10 Year Treasury note and that the mortgage rates would tend to follow that down. (that is a simplistic version, it is a bit more complex than that. The 30 year fixed rate mortgage is not actually tied to the 10 year treasury, but it tends to track it closely.) It appears as if 4% is an “invisible barrier” that the rates don’t want to drop below, you can see the spread get larger between the two the lower the 10 year treasury goes. Today the 10 year Treasury nudged down a bit, will that bring rates lower? Hard to predict the future, but the 10 year Treasury is about the best barometer we have on the direction of mortgage rates.
The Average 30 Year Fixed Rate Conventional Mortgage in the US is 4.10% as of 10/27/2011. As of today, 0/28/2011 the Edina Realty Mortgage 30 year Conventional Mortgage rate is at 4.25%.
These are still incredibly low rates! If you are looking at refinancing or buying, you might want to look into the ARM products at 3% and lower. These ARM products work well for many situations and worth investigating a bit to see if they would make sense for you.
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 10/28/2011 09:15 AM Central
Product Interest Rate APR Conforming1 and FHA1 Loans 30-Year Fixed 4.250% 4.434% 30-Year Fixed FHA 3.875% 4.682% 15-Year Fixed 3.375% 3.692% 7-Year ARM 3.000% 3.238% 5-Year ARM FHA 2.750% 2.908% Jumbo1 Loans – Amounts that exceed conforming loan limits1 30-Year Fixed 4.500% 4.644%