FHA Home Loan Rates October 19 – Current Rates Up
Posted on | October 19, 2009 | No Comments
FHA home loan rates for October 19th, 2009 are up early. The conventional 30 year fixed rate mortgage is up to 4.86% while the 15 year fixed is up to 4.38. The 5/1 ARM is also up to 3.88%. FHA home loan rates are generally .5% to .75% higher than conventional mortgage interest rates so you can do that math and see that FHA loan rates are still extremely low when compared to history. This move higher is no surprise as the 10 year treasury rate yield moved up last week and is up slightly this morning.
The movement of the 10 year yield will go a long way towards determining the near term trend for mortgage rates. If the 10 year treasury rate yield can move much higher than the 50 day moving average and cause the moving average to start moving up then we are very likely going to see higher mortgage rates. If the 10 year yield grinds sideways to down we can expect to see mortgage rates stay below 5%.
The Fed is continuing to work hard to keep mortgage rates low but by the end of October they are going to stop buying US Treasuries. This is likely the reason that we have seen an up trend in treasury yields over the last few weeks but we still need to determine if that trend is going to turn into a longer, multi month up trend. If you have want to get a low mortgage rate you do not want this 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: Tiffany Mann
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