Today’s Lowest FHA Mortgage Rates – March 24 Interest Rates Up Slightly
Posted on | March 24, 2010 | No Comments
Today’s lowest FHA mortgage rates are up slightly on March 24th as the 10 year treasury rate yield has rallied higher more than 4%. This is very bad news for anyone who was waiting for mortgage rates to drop as the 10 year yield is now well above its 50 day moving average.
Over the last several decades the 10 year treasury rate yield and the 30 year fixed mortgage rate have had a very strong correlation. In the last year that correlation has not been as strong because the Federal Reserve Bank was purchasing mortgage backed securities. At the end of March the Fed will stop purchasing mortgage-backed securities.
With this being the case we can almost guarantee that the 30 year fixed mortgage rate and 10 year treasury rate yield will see a strengthening in their correlation. With this being the case we can expect FHA mortgage rates and conventional mortgage rates to move higher as the 10 year yield looks like it’s making an assault on 4%.
It is highly likely that we will see 30 year fixed mortgage rates around 5.5% in the very near future if the 10 year treasury rate yield continues its uptrend. This is a very good reason you should take action now rather than wait if you are looking for a low mortgage interest rate.
Author: Mike Garner
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