VA Home Loan Mortgage Rates – Rates Up This Week?
Posted on | October 25, 2009 | No Comments
VA home loan mortgage rates are up on Sunday; could this be a sign of things to come this week? The conventional 30 year fixed rate mortgage is up to 4.89% while the 15 year fixed is up to 4.33%. The 5/1 ARM is also up to 3.95%. VA home loan mortgage rates are generally .5% to 1% below conventional mortgage rates so you can see VA home loan rates remain extremely low.
The 10 year treasury rate yield broke through its 50 day moving average on Friday yet there was very little upward movement in mortgage interest rates. This makes us wonder if we will see a break down of the 10 year yield or will mortgage rates move higher. One of the two has to happen because the 10 year yield and the 30 year fixed rate mortgage have had a strong correlation since 1971 and that has not changed in 2009.
This week will be interesting in both aspects. Either the 10 year yield is going to continue its up trend and we are going to see higher mortgage rates or we are going to see a breakdown of the 10 year yield and mortgage rates will continue to fall, possibly to all time lows. There is no way to make a strong prediction now so we will just wait and see how this week plays out.
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: Jeremy North
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