Today’s Lowest FHA Mortgage Rates – Interest Rates Higher on March 29
Posted on | March 29, 2010 | No Comments
Today’s lowest FHA mortgage rates have moved higher as the 10 year treasury yield is uptrending in the federal reserve bank is going to stop purchasing mortgage-backed securities at the end of the month. With interest rates higher on March 29 we are likely to see mortgage rates move up in April.
The 10 year treasury yield has been in a slow and steady uptrend since December of 2008. Just recently we have seen the 10 year yield break through its 50 day moving average and move much higher. It will come as no surprise to see the 10 year yield continue to move up which will push mortgage rates higher.
The 10 year yield and the 30 year fixed mortgage rate had a very strong correlation since 1971. Do not be surprised to see the 10 year yield pull mortgage rates higher over the next several months. This could cause 30 year fixed mortgage rates to move all the way up to 6% or higher.
Another reason that today’s lowest FHA mortgage rates are moving out is because the Federal Reserve Bank is concluding their mortgage-backed security purchase program very soon. With this being the case many analysts predict mortgage rates could move up at least one full percentage point.
Author: Jeremy North
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