FHA Loan Rates September 22 – Mortgage Rates Up Today
Posted on | September 22, 2009 | No Comments
FHA loan rates for September 22nd, 2009 have ticked up a bit as the conventional 30 year fixed mortgage rate has moved up today as well. FHA loan rates are generally between .5% and .75% higher than conventional fixed rates based on the mortgage lender. Some borrowers have gotten FHA loan rates very close to conventional rates but this is not common. The 30 year fixed mortgage rate today is at 5.01% so FHA loan rates are approximately 5.76%.
Mortgage rates in general have stayed around the same level for the entire month of September. Since the beginning of the month the 30 year fixed rate mortgage has been between 4.91% and 5.05%. There have been ups and downs along the way but it seems that 5% is the level that the 30 year fixed is attached to. With a strong move below this level we could see average mortgage rates drop a lot.
The 10 year treasury rate yield has been in a down trend for the last few months which has greatly helped to push mortgage interest rates lower. If the 10 year yield continues to see a move south it is very likely that FHA loan rate and all mortgage rates are going to get very close to record lows. The issue at hand is the fact that the Federal Reserve Bank has been buying US Treasuries for much of the year. This has greatly assisted in keep treasury yields low. When this stops we are likely to see a bounce in yields.
At the end of October the Fed plans to stop buying Treasuries. One has to wonder if this will cause an increase in treasury yields which will push mortgage rates higher. If history repeats itself, a move up in yields will definitely cause mortgage interest rates to move upward.
Make sure to check out Subprime Blogger on a daily basis for your FHA loan rates. We will display the current FHA loan rates as well as a short commentary similar to the above column. Bookmark the following FHA Loan Rates category to gain easier access to our daily FHA rates column:
Author: Jeremy North
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