VA Home Loan Mortgage Rates September 24 – Interest Rates Volatile Today
Posted on | September 24, 2009 | No Comments
VA home loan mortgage rates have been quick volatile today as 30 year fixed mortgage interest rates on conventional home loans have been all over the map. Early in the day, mortgage rates were as low as 4.91%. By mid morning rates had jumped all the way up to 5.05%. Around noon we are seeing mortgage interest rates back below 5% at 4.99%. With the conventional 30 year fixed at 4.99% you can expect to see VA home loan mortgage rates just under 4% at 3.99%.
The Federal Reserve Bank continues to work hard to keep interest rates near all time lows. Yesterday they reiterated that they were going to stop buying US Treasuries by the end of October but they also stated that they were going to extend the program to buy mortgage backed securities. The program was initially expected to end by the end of 2009. The new plan is to end the program at the end of the first quarter in 2010.
This means that mortgage rates are likely to remain low through March of 2010 but they might not stay near historic lows because treasury yields could see a rally when the Fed stops making purchases. If the 10 year treasury rate yield rallies it is very likely that it will pull mortgage rates up with it but the purchases of mortgage backed securities will help to keep rates moderate. It will be very interesting to see which purchase program will win out. With the treasury yields push mortgage rates higher or will the purchases of mortgage backed securities keep mortgage rates low?
No one can answer this question at the current moment. We will have to see what the Federal Reserve Bank does in the near future. It is very possible that they will continue to buy treasuries if they start to see a rally in the yields. Either way, it would be very beneficial to keep an eye on mortgage rates in the near future.
Make sure to check out Subprime Blogger on a daily basis for your VA home loan rates. We will display the current VA home loan rates as well as a short commentary similar to the above column. Bookmark the following VA Loan category to gain easier access to our daily VA loan rates column:
Author: Heather Best
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