Latest Mortgage News
Mortgage Rates Go Up and Down This Week
Ahead of the Federal Open Market Committee (FOMC) meeting this week, investors began selling off US Treasuries and other fixed income instruments. The Mortgage Backed Securities (MBS) saw selling which in turn increased their yields. Many mortgage bankers and mortgage brokers experienced more than one repost to the negative on mortgage interest rate sheets. Investors may have been expecting, or at least worried, that the Fed might come out with stronger language about an economic recovery and possible inflation.
Instead, what actually happened was that the Fed left the Federal Funds Target Rate at the current 0.000%-0.250% range. Officers also signaled again that interest rates should remain low for an extended period. This immediately sent the market back in the direction of safety. Stocks went down some and US Treasuries and MBS yields went back to the earlier lows of the week.
In an unusual move, FOMC committe member Kevin M. Warsh published an opinion piece in the Wall Street Journal [read here]. He openly admits that the Fed still has a huge battle ahead of it to unwind its extraordinary measures in an orderly way. Although the "panic of 2008" is behind, there is still much more to be done.
Freddie Mac Primary Mortgage Market Survey (PMMS)
The week ended just slightly better than last week. The up and down of the week balanced almost to zero with just a touch of improvement. Currently, the 30 year fixed average rate is 5.04% with .6% in points (otherwise called the origination fee). Rates are still slightly above the lows of last April, but are still near historic lows.
Today's Current Mortgage Rates
If you are looking to purchase a new home, or you need to refinance your current home, check out this site to find the lowest mortgage rates in your area.
For more information, check out these sources.
Press Release from FOMC September 23, 2009
Mortgage Daily News - Mortgage Rate Watch Page
Freddie Mac's Weekly Primary Mortgage Market Survey (PMMS)
