FHA Home Loan Rates October 16 – Mortgage Rates Fall
Posted on | October 16, 2009 | 1 Comment
FHA home loan rates for October 16th, 2009 are falling as the week concludes. The conventional 30 year fixed mortgage rate is at 4.86% and the 15 year fixed mortgage rates is at 4.34%. The 5/1 ARM is actually going the other direction and is up to 3.91%. FHA home loan rates are generally .5% to .75% higher than conventional mortgage rates so you can do the math and see the 30 year fixed FHA is around 5.61%. This is still very low when looking at mortgage rates from a historical perspective.
The 10 year yield broke through its 50 day moving average yesterday and is holding above it early today. If we go through a break and retrace then head higher it looks as if mortgage rates below 5% will be a thing of the past. The 200 day moving average of the 10 year yield is already up trending and if the 50 dma starts to up trend we could see the 10 year yield around 4% very soon.
WIth this in mind, locking in at a low mortgage rate now is very important. If you wait a few months or even a few weeks you might be staring mortgage rates close to 5.5% or higher in the eye. If the 10 year yield does work its way towards 4% there is little doubt that conventional mortgage interest rates will break 5.5% and start heading towards 6%. This is all with the Fed still buying mortgage backed securities as well.
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: Alan Lake
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October 16th, 2009 @ 3:46 pm
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