FHA Home Loan Rates October 21 – Interest Rates Volatile Today
Posted on | October 21, 2009 | 1 Comment
FHA home loan rates for October 21st, 2009 have been very volatile today. Early on we saw the conventional 30 year mortgage interest rate at 4.95% and it has now dropped to 4.81%. The conventional 15 year fixed is unchanged at 4.29% and the 5/1 ARM is up to 3.77%. The volatility in mortgage rates is to be expected as the government is introducing another program to push rates lower. FHA home loan rates are generally .5% to .75% higher than conventional mortgage rates.
Conventional wisdom would think that treasury yields would go a long way towards setting mortgage rates. This has been the case for much of the last 40 years but this year has deviated a bit and much of that is due to the government’s interactions. The Federal Reserve Bank continues to buy mortgage backed securities which has greatly helped to keep mortgage interest rates at low levels.
Every time the market attempts to set interest rates the Obama administration jumps in with a new plan to keep mortgage interest rates low. Just this week we heard of another plan that is attempting to keep mortgage rates at low levels. We do not know the specifics yet but as soon as we get the details we will pass them along to you so make sure to stay tuned in.
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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October 22nd, 2009 @ 5:21 pm
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