FHA Home Loan Rates October 8 – Current Mortgage Rates Stable
Posted on | October 8, 2009 | No Comments
FHA home loan rates for October 8th, 2009 have remained stable for much of the morning. The 30 year fixed conventional mortgage rate is currently at 4.9% while the 15 year fixed is at 4.37%. FHA home loan rates are generally between .5% and .75% higher than conventional rates so you can do the math and figure the the 30 year fixed FHA mortgage rate is currently at 5.65%. Do not expect this lack of volatility to continue as October is sure to be an interesting month for mortgage interest rates.
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The 10 year treasury rate yield and the 30 year fixed rate mortgage have had a strong correlation since 1971. As one goes so goes the other. In fact, this summer when the Federal Reserve Bank was doing everything they could to push mortgage rates lower the 10 year treasury rate yield was increasing which caused mortgage rates to stay above 5%. It took a down trend in the 10 year yield to get mortgage rates back under 5%.
At the moment the 10 year treasury rate yield 3.17% with its 200 day moving average being at 3.15%. If the 200 day moving average holds as support and we see a bounce from the yield there is a good chance that we could see a short term up trend in treasury yields. No one knows if this will happen but with the Fed taking their hand out of the pot with treasuries there is a strong possibility of this.
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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