Mortgage Interest Rates September 17 – Home Loan Rates Drop
Posted on | September 17, 2009 | No Comments
Mortgage interest rates for September 17th, 2009 are at 4.97% for the 30 year fixed rate mortgage. Home loan rates continue to drop as the 5/1 ARM falls to 3.89%. On a side note, the 15 year fixed rate mortgage is up to 4.5% which is a slight jump from yesterday. Average 30 year fixed mortgage rates have been near 5% for the entire first two weeks of September. We are now seeing a break of that as the 10 year treasury rate continues to decline.
If mortgage rates can stay below 5% for a significant period of time we might see new all time lows for the benchmark mortgage rate. Several mortgage lenders are reporting mortgage rates below the 4.97% but it is likely that these are rates for borrowers who have seen an increase in their home value coupled with an amazing credit score and quality cash flow in the form of income. For most borrowers, anything below 5% on a 30 year fixed is an amazing rate.
The government continues to buy mortgage backed securities and US Treasuries which is greatly helping to keep mortgage interest rates near all time lows. Eventually the Federal Reserve bank is going to run out of money for these purchases but it does not look like it is going to happen any time soon. At the end of October the Fed plans to ease the purchasing of mortgage backed securities and stop buying US Treasuries altogether. This might mean a jump in mortgage interest rates so please be aware of this.
Make sure to check out Subprime Blogger on a daily basis for your mortgage interest rates. We will display the current rates as well as a short commentary similar to the above column. Bookmark the following daily mortgage rates category to gain easier access to our mortgage interest rates column:
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