FHA Home Loan Rates September 29 – Current Rates Steady
Posted on | September 29, 2009 | No Comments
FHA home loan rates for September 29th, 2009 remain steady at 5.66% for a 30 year fixed. The conventional 30 year fixed mortgage rate currently sits at 4.91% with the 15 year fixed at 4.39%. You can expect FHA home loan rates to be around .5% to .75% higher than conventional loan rates so we always err on the side of caution. Mortgage rates continue to remain historically low and this is likely to be the case until at least Halloween.
On Halloween we are going to see the conclusion of the Federal Reserve Bank purchasing US Treasuries. This is likely to cause a short term rally in treasury yields which will push mortgage rates slightly higher. I do not think mortgage rates will go up greatly because the Fed will continue to buy mortgage backed securities but there will be at least a slight move higher; possibly to just above the 5% level.
The entire month of October should be very interesting for mortgage interest rates because markets usually predict the future rather than follow the past. If this is the case one would think that the treasury yields would start moving up prior to Halloween. This has not been the case at all but we could see a bounce in the very near future. The 10 year yield is starting to get close to the 200 day moving average which may serve as support and a springboard to move higher.
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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