Mortgage Interest Rates December 28 – New Highs Today
Posted on | December 28, 2009 | No Comments
Mortgage interest rates for December 28th, 2009 are reaching new multi month highs today. The 30 year fixed mortgage rate is up to 5.03% while the 15 year fixed mortgage rate is up to 4.48%. The 5/1 ARM is also up to 4.05%. In December we have seen the 10 year treasury rate yield shoot to the moon as the yield is now up to 3.83%; the yield was at 3.2% when the month started.
There has been a strong correlation between the 10 year yield and the 30 year fixed mortgage rate since 1971, which is when Freddie Mac started collecting mortgage data. That correlation has not been as strong in 2009 because of the government’s interactions with the interest rate environment but there is still a correlation. When the 10 year yield moves higher, 30 year fixed rates eventually follow.
This is exactly what we are seeing in interest rates. Since the beginning of December the 30 year fixed has moved from 4.5% to above 5%. Do not be surprised if we see an assault on 5.5% soon if the 10 year yield does not cool off. There is likely to be very light trading this week so we might not get a true indication until 2010.
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:
Author: Jesse Wojdylo
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