FHA Loan Rates – Mortgage Rates Drop in August
Posted on | August 21, 2009 | 1 Comment
FHA loan rates have been just about as volatile as average mortgage rates. In the month of August we have seen moves down, up, and then down a bunch. The 30 year fixed rate mortgage currently stands around 5.12% but as we all know, that is likely to change in the near future. With the Federal Reserve making a concerted effort to keep daily mortgage rates low, it looks as if mortgage rates will drop to end the month of August.
The 10 year treasury rate has seen a strong move down over the last week but is finding support lately. The bottom of the trend channel has not been broken so there is a good chance that we are going to see a rally in the 10 year treasury rate yield. If this rally happens, it is likely that we are going to see interest rates move higher again but no one really knows how high they will go. On average, mortgage rates have gotten to about 5.5% before falling back.
FHA loan rates are likely to follow the exact trend of average mortgage rates as that has been what they have been doing for the last several months. Getting an FHA loan rate is likely to be a little higher than average mortgage rates but the overall trend will remain the same. The one good thing about the current economic environment is that our government is trying to help all consumers out by keeping mortgage rates low.
It is likely that you have seen many mortgage lenders that are advertising mortgage interest rates below 5%. If you are looking for an FHA loan rate, you might think that you cannot get a rate this low. Well, it is highly likely that that is the case, but you will never know until you actually get out there and contact some lenders and see what they can offer you. Many mortgage lenders are working hard to get new business so you might be in luck.
Overall, mortgage interest rates and FHA loan rates have been down for the month of August. If average mortgage rates can find a way to get under 5% it will get very interesting in the mortgage market. There is likely to be a swarm of mortgage applications that are submitted due to these low rates. If you have been thinking about refinancing or getting your first mortgage, it might be a good idea to get ahead and get started so you don’t get caught up in this mess.
Author: Alan Lake
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August 21st, 2009 @ 8:30 pm
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