FHA Loan Rates September 24 – Mortgage Rates Jump Today
Posted on | September 24, 2009 | No Comments
FHA loan rates for September 24th, 2009 have moved higher. Early on we are seeing 30 year fixed mortgage rates jump from 4.91% to 5.05% for conventional loans. For FHA loan rates this means 30 year rates are around 5.80%. This move is likely due to the fact that the Federal Reserve reiterated that they are going to stop buying US Treasuries by the end of October.
There is likely to be a short term rally, at the least, in treasury yields when the Fed stops buying treasuries so this will likely push mortgage rates higher. No one knows how much of a rally we are going to see but there will definitely be a short term bounce. If we do not see any foreign investors come into the market then the short term rally might turn into something long term.
The Federal Reserve Bank has worked very hard to keep mortgage interest rates low so it will be interesting to see how they address the situation if there is a strong multi month rally in treasury yields. It is possible that they will start sinking money back into US debt just to keep treasury yields in check. I am certain that Ben Bernanke and his staff have addressed this already but they are hoping it does not have to happen.
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: Mike Garner
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