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%

¹Important Disclosures, Assumptions and APR ›View/Print

Rates Provided by

 

Related articles

• 30-year mortgage rate jumps to 4.12% (marketwatch.com)
• HSH.com Weekly Mortgage Rate Radar: Rate Rise Ends 10-Week Streak of Record-Setting Lows (prweb.com)
• What’s Ahead For Mortgage Rates This Week : October 11, 2011 (clewismortgage.wordpress.com)

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WSJ analysis: Minnesota has lowest mortgage denial rate

I wonder if this is the reason Minnesota ranked # 1 in the Nation for Mortgage Fraud?  20% still seems high to me for denial rate.  I would assume someone may not qualify for the best interest rates, but may be able to put into a higher rate mortgage instead rather than just simply denied.

This story is Edina Realty, just re-posting:

The majority of homebuyers who sought home loans in Minnesota last year were approved, according to analysis from the Wall Street Journal. In fact, the newspaper’s findings show the state had the lowest mortgage application denial rate in the country in 2010 for homebuyers seeking a new mortgage as well as homeowners trying to refinance an existing mortgage.

 

According to the research, which looked at data from the nation’s 10 largest mortgage lenders, Minnesota’s home loan application denial rate was 19.9 percent last year. The average rate for the entire nation was 26.8 percent – up markedly from 2009’s level of 23.5 percent.

Minnesota was the only state with a mortgage application denial rate lower than 20 percent, the Journal says.

Minnesota was the only state with a mortgage application denial rate lower than 20 percent, the Journal says. The mortgage application denial rate for Wisconsin and North Dakota was 23 percent and 21.1 percent, respectively – both lower than the national average.

 

In addition to the positive mortgage application acceptance rate in Minnesota, home loan interest rates have stayed near the same levels as at the beginning of 2011, making this year a premier time to purchase homes for sale in the state.

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%

¹Important Disclosures, Assumptions and APR ›View/Print

Rates Provided by

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 Dallas, is 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

Related articles

• Fed’s Fisher Says Operation Twist May Be Ineffective, Hurt Jobs (businessweek.com)
• Fed’s Fisher slams Twist move as ineffective (marketwatch.com)
• Robert Shiller on Why “Operation Twist” Won’t Help the Housing Market – Business Insider (johnmurphyreports.com)

Mortgage Rates after the Twist, 09/26/2011 (day 5)

Image by Rev Dan Catt via Flickr

Still watching the 10 Year Treasury to see if there is any indication that rates might come down.  Today the Dow soared 272 points to close over 11,000.  This is great news by itself…  

The 10 Year Treasury rose 5.31% closing at 1.9040.  Keep in mind, even though it increased – it is still extremely low.  

The 10 Year Treasury is heading in the wrong direction to bring mortgage rates even lower, but as you can see the 10 year Treasury moves a lot more than the mortgage rates do.  The 10 Year treasury may yet drop and bring the mortgage rates down.  Time will tell.  As of today, the 10 year treasury is going up and the mortgage rates have not changed:  (oh bummer, we appear to be stuck at record low interest rates.)

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 09/26/2011 09:58 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	3.125%	3.440%
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%

¹Important Disclosures, Assumptions and APR ›View/Print

Rates Provided by

 

 

 

I’ll keep tracking this for a while longer, or at least until I get bored with it!  

 

Related articles

• Edina Realty Mortgage Rates: Sept 08, 2011 (craigkamman.wordpress.com)
• 30-year mortgage rate stays at 4.09 percent (sfgate.com)
• Treasuries Fall, Pushing 10-Year Yields Up From Almost Record (businessweek.com)
• Bets on Bernanke Return 28% for Treasuries as Twist Divides (businessweek.com)

Why Do Women Pay More for Mortgages?

Why Do Women Pay More for Mortgages?.

This is an interesting article from the National Association of Realtors.  I had no idea that there was even a difference…  I am really shocked, if anything I would have assumed women pay less for mortgages.  I always thought they generally had better credit scores than men..

 

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%

¹Important Disclosures, Assumptions and APR ›View/Print

Rates Provided by

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

Related articles

• Edina Realty Mortgage Rates: Sept 08, 2011 (craigkamman.wordpress.com)
• Rate on 30-year mortgage stays at record 4.09 percent (abclocal.go.com)
• Rate on 30-year mortgage stays at 60-year low (usatoday.com)
• Mortgages: Mortgage rates move little in latest survey (marketwatch.com)

Edina Realty Mortgage Rates: Sept 08, 2011

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:

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

Related articles

• 30 Year Fixed Rate Mortgage averages chart September 01, 2011 (craigkamman.wordpress.com)
• Mortgage rates hit record lows, 30-year at 4.12% (marketwatch.com)
• Mortgage Rates Hit Record Lows, at 4.12% (online.wsj.com)