VA Home Loan Mortgage Rates – Rates Drop with Treasury Yields
Posted on | October 13, 2009 | No Comments
VA home loan mortgage rates dropped today as the 10 year treasury rate yield saw a decline of 2%. The conventional 30 year fixed mortgage rate is at 4.88% while the 15 year fixed is at 4.34%. The 5/1 ARM also dropped to a low of 3.73%. We expected to see a drop in the 10 year treasury rate as the move up last week was quite drastic but it is surprising to see mortgage interest rates all the way back below 4.9%. VA home loan mortgage rates are generally between .5% and 1% lower from most lenders so the 30 year fixed VA rate is still below 4%.
The move that we saw on Friday in the 10 year treasury rate yield, 4%, was well overdone and there was bound to be a pull back. The pullback started today as the yield was down over 2%. This drop in yields help to push mortgage rates to the much lower levels. There is still much more room for a pull back in the treasury yield so we will have to step back and see what this week brings.
This might be a great opportunity to get out there and lock in at an extremely low rate. If the 10 year treasury rate yield continues its up trend off the 200 day moving average then this might be the last true chance you get to lock in at a conventional mortgage rate lower than 5%. There is a chance that the yield will drop all the way back to the 200 dma but it has already tested this level of support twice. Only time will tell where we go from here but the charts are showing us higher 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: Mike Garner
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