Tag Archives: Fixed rate mortgage

10 year treasury moves up and the 30 Year mortgage rates are up


This is pretty interesting because this is the other direction than what the experts thought Operation Twist would have on the market.  John Murphy pointed this out earlier on his post, then tonight I saw the St Louis Fed had updated their 30year mortgage average rates.

There are 2 things I find really interesting here but can’t explain.

1) the spread gets larger between the mortgage rates and the 10 year treasury the lower the treasury goes.

2) the 10 year treasury is going up, when most thought it would go down as a result of Operation Twist.

Note: the 30 year mortgage is updated as of 10/13/2011.    The 10 year treasury is updated as of 10/11/2011 at 2.18%

Just curious what Edina Realty Mortgage rates are today…  Looks like they are heading up.

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 10/13/2011 09:15 AM 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 3.375% 3.692%
7-Year ARM 3.000% 3.238%
5-Year ARM FHA 2.750% 2.908%
Jumbo1 Loans – Amounts that exceed conforming loan limits1
30-Year Fixed 4.500% 4.644%

 Equal Housing Lender

Leave a comment

Filed under Uncategorized

Mortgage rates hit record low of 3.94%: Freddie


Mortgage rates hit record low of 3.94%: Freddie.

Report from HousingWire that the 30 year fixed rate mortgage average is down to 3.94%.

The average rate for a conventional 30-year, fixed-rate mortgage dropped below 4% for the first time in history amid increasing global concerns, according to Freddie Mac.

Today’s rates from Edina Realty nudged up a bit from yesterday, I suspect these will dip back down.

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 10/06/2011 09:35 AM Central

Product Interest Rate APR
Conforming1 and FHA1 Loans
30-Year Fixed 4.125% 4.308%
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

Leave a comment

Filed under Uncategorized

30 Year Fixed Rate Mortgage drops, is it the result of The Twist?


I had been posting every business day on the 10 year treasury and the 30 year mortgage since the announcement of Operation Twist.  The reason why I am posting info on the 10 year treasury is that the 30 year fixed rate mortgage tends to track closely. It is not tied directly together, but the 10 year treasury is used as a guide for banks when they buy and sell mortgages.

Earlier this week the 10 year treasury started moving higher.  The 30 year fixed rate followed upwards.  Yesterday I got busy and forgot to track these and sure enough – the 30 year fixed rate mortgage rate dropped today.

The 10 year treasury nudged down a bit today as did the 30 year fixed rate mortgage.  The national average rate for a 30 year fixed rate mortgage today is 4.01%.  This chart below shows the average 30 year fixed rate mortgage compared to the 10 Year Treasury.  The 30 year mortgage rate data is updated as of 9/29/2011, the 10 year treasury is updated as of 9/27/2011 at 2.01.  (today it closed at 1.96)

 

click to enlarge

Now let’s look at where Edina Realty Mortgage Rates are today.

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 09/29/2011 03:10 PM Central

Product Interest Rate APR
Conforming1 and FHA1 Loans
30-Year Fixed 4.125% 4.308%
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
I don’t know if the rates will drop further, it is possible I guess.  Many experts believe it will, I am still a little cautious.  The 30 year fixed rate mortgage hasn’t dipped below 4% since it has been tracked by the Feds, so this may be a glass wall that it can’t break through.  Judging by the graph, it appears the spread between the 10 year treasury and the 30 year fixed rate mortgage gets larger.  So the question is how much further does the 10 year treasury have to drop to pull the rate below 4%?  What do you think, post a reply.   It has certainly grabbed my interest again to continue following this.

Leave a comment

Filed under Uncategorized

Mortgage Rates September 22, 2011, The day after The Twist.


Yesterday the Fed announced their big plans to target the Long term securities which should have an effect on the Mortgage Rates. (The Twist)

Most are expecting mortgage rates to go down a bit, the question is how much.  My opinion is that the 30 year mortgage may drop by 1/8%.  I could be wrong, I am basing this from history when the Fed tried this in the 1960s with little success.

*Disclosure: I am not a mortgage banker or any kind of financial market guru – just giving my opinion – however wrong it may be.  So don’t take this as any sort of financial advice.

The markets were open today and it was an ugly scene, the Dow dropped by 391 after a big drop yesterday.  Fears of the European financial mess is what is reported to have sent stocks tumbling today.  The 10 year bond dropped .16 today, which is a good indicator on the mortgage rates.  Keep in mind, mortgage rates will trend along the 10 year treasury but not follow identically.  The 10 year treasury will need to stay at a level a while before mortgage rates will trend to that level.

This graph is from the St Louis Federal Reserve Bank and was updated today.

The Red Line indicate the 10 Year Treasury and the Blue Line indicates the 30 Year Mortgage average rate.

The data for the 30 Year Mortgage is below.  There is no change yet, but there will be a lag time involved:

2011-09-01   4.22
2011-09-08   4.12
2011-09-15   4.09
2011-09-22   4.09

The data for the 10 Year  Treasury is below.  The data only goes up to 9/20 now, but it last traded at 1.715 (9/22)

2011-09-01   2.15
2011-09-02   2.02
2011-09-05      .
2011-09-06   1.98
2011-09-07   2.05
2011-09-08   2.00
2011-09-09   1.93
2011-09-12   1.94
2011-09-13   2.00
2011-09-14   2.03
2011-09-15   2.09
2011-09-16   2.08
2011-09-19   1.97
2011-09-20   1.95

Looks to me like it is very likely we will see the 30 year mortgage rate dip a bit.  Don’t know by how much, but my guess is it may dip just below 4% on the 30 year fixed. 

As of Today,  Edina Realty Mortgage Rates are lower than the national average of 30 year mortgages: 

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 09/22/2011 09:51 AM Central

Product Interest Rate APR
Conforming1 and FHA1 Loans
30-Year Fixed 4.000% 4.181%
30-Year Fixed FHA 3.750% 4.550%
15-Year Fixed 3.000% 3.314%
7-Year ARM 2.750% 3.122%
5-Year ARM FHA 2.750% 2.908%
Jumbo1 Loans – Amounts that exceed conforming loan limits1
30-Year Fixed 4.250% 4.392%

Bookmark this link to check Edina Realty Mortgage Rates at any time.

Leave a comment

Filed under Uncategorized

Edina Realty Mortgage Rates: Sept 08, 2011


Mortgage

Image by Rev Dan Catt via Flickr

It is really hard to believe that rates are this low.  If you are sitting on the sidelines contemplating owning vs renting or refinancing…  start the process now – even if you don’t commit, at least get the answers.  Sit down with a mortgage banker and take advantage of these rates. 

I don’t know how long this will last, watch the 10 year Bond and watch the fluctuations.  The 10 year Bond is a good benchmark on where rates are going, the mortgage rates track closely but not tied directly to the 10 year Bond.  

 These are today’s rates from Edina Realty Mortgage:

 

 

30yr Fixed Conforming

Interest Rate

4.125%

APR

4.308%

30yr Fixed FHA

3.875%

4.682%

15yr Fixed Conforming

3.250%

3.566%

7yr ARM Conforming

2.875%

3.180%

5yr ARM FHA

2.750%

2.908%

30yr Fixed Jumbo

4.250%

4.392%

Rates as of 9/8/2011 9:19 AM Central

Important disclosures, assumptions
and APR View/print

Get more rates »

Rates provided by: Edina Realty Mortgage

 To get more information on Edina Realty’s mortgage, rates, and pre-approvals – click here.  

2 Comments

Filed under Uncategorized

30 Year Fixed Rate Mortgage averages chart September 01, 2011


This chart was updated today and I thought I should post it as a good reminder of what an opportunity we are sitting on.  This is an opportunity of a lifetime if you want to own a home.  Historically low-interest rates, depreciating housing prices making affordability at an all time high making owning even cheaper than renting right now.

30 Year Fixed Rate Mortgage US Average 09/01/2011

Call a mortgage banker and have a conversation about refinancing or qualifying for a home purchase.  If you need recommendations on who to call, let me know.

1 Comment

Filed under Uncategorized

30 Year Conventional Mortgage rate historical perpective


It seem like we always hear “near record low mortgage rates”, like another “Guitar Center blow out sale”.

This will help put things in a little perspective.  This was just updated 2011-08-11 4:31 PM CDT

30 Year Mortgage Rates 1976-05-07 to 2011-08-11

How much lower do you think they will go?

I am thinking now is a good time…
 

Leave a comment

Filed under Uncategorized