Mortgage Rates and Operation Twist – Day 6

Well, it looks like the Feds plan to lower rates may have backfired.  It is probably a bit early to make that conclusion, but the trend is beginning to point that direction.

Today the stock market rallied again pushing the Dow up about 146 point to close near 11,190.  The 10 Year Treasury went up 0.1120 (+5.88%) to close at 2.016.   That is trending higher which will push the mortgage rates higher if it continues.

Today’s Mortgage Rates from Edina Realty jumped about 1/4% on the 30 year fixed conventional today, probably due to yesterdays gain in the 10 Year Treasury.

Today’s Mortgage Rates

The current interest rates shown below are based on a purchase of a single-family, primary residence. For current refinance rates, contact us

as of 09/27/2011 02:38 PM Central

Product Interest Rate APR
Conforming1 and FHA1 Loans
30-Year Fixed 4.250% 4.434%
30-Year Fixed FHA 3.750% 4.550%
15-Year Fixed 3.250% 3.566%
7-Year ARM 2.875% 3.180%
5-Year ARM FHA 2.750% 2.908%
Jumbo1 Loans – Amounts that exceed conforming loan limits1
30-Year Fixed 4.375% 4.518%

Equal Housing Lender

There is a great article about The Twist from HousingWire:  Dallas Fed Chief Fisher not buying Operation Twist


Richard Fisher, president of the Federal Reserve Bank of Dallasis sticking to his contrarian view on the Federal Open Market Committee’s “Operation Twist” plan, saying it could be a confidence and jobs killer…

…”Implicitly, the program may also lift short-term sales, albeit mildly given the expectation that rates at the short end will remain at exceptionally low levels through mid-2013,” he said.

Fisher, along with Charles Plosser, president of the Philly Fed, and Narayana Kocherlakota of the Minneapolis Fed, once again dissented to the latest FOMC policy decisions, marking the most opposition on the committee in nearly two decades.

Read Full Article


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