FHA Home Loan Rates January 4 – Mortgage Rates Drop to 5%
Posted on | January 4, 2010 | 1 Comment
FHA home loan rates for January 4th, 2009 are down as the conventional 30 year fixed mortgage rate is right at 5%. The conventional 15 year fixed mortgage rate is at 4.45% and the conventional 5/1 ARM is up slightly to 4.14%. The 10 year treasury rate yield has pulled back slightly today which is a strong indicator that mortgage rates are going to be stable to down. It will be interesting to see how mortgage rates and the 10 year treasury rate yield move over this first week of January.
HORIZONATAL
Many analysts have predicted that mortgage interest rates are going to move higher in 2010 but much of that will be determined by the Federal Reserve Bank. If the Fed continues to buy mortgage backed securities then it is hard to argue that mortgage rates are going to stay moderately low. At the present time the Fed claims that they are going to stop buying mortgage backed securities by the end of March 2010.
If the Fed does stop buying mortgage backed securities at the end of March then you can be rest assured that mortgage rates will move up .5% to 1%. The overall direction of the housing market and home prices will greatly determine what the Federal Reserve Bank does over the next few months. Either way, mortgage rates are relatively low right now so you might want to take advantage.
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: Heather Best
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January 6th, 2010 @ 12:00 am
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