Mortgage Interest Rates Today: 30 Year Fixed Interest Rates Now at 5%
By: Sheldon Levene
For the first time in months it takes a buy down, also known as discount points, to get a 30 year fixed rate under 5%. Mortgage interest rates have spiked in the past few weeks as mortgage-backed securities prices, which move mortgage rates in the opposite direction, have deteriorated.
Why the rise in mortgage interest rates? It has a lot to do with positive economic data. A recent string of economic reports that point to the economy strengthening have caused investors to shy from MBS for more profitable investments. MBS prices are unchanged today as Treasury Secretary Geithner suggested that it’s reasonable to expect “positive job growth” starting in spring.
The benchmark 10 year treasury yield, used to forecast mortgage interest rates, is up today +0.0040 (+0.11%) and at a 4 month high of 3.75%.
Mortgage Interest Rates Today:
Today’s mortgage interest rates are are up considerably from record lows, especially on 30 year fixed mortgages. Today’s 30 year fixed interest rates are as low as 5% at par with a high risk of going up. Today’s 15 year fixed interest rates are as low as 4.25% at par, unchanged today and relatively stable. Today’s 5/1 ARM rates are as low as 3.875% at par, up from a record low 3.5%. 30 year fixed rates hit their record low nearly a month ago when they dropped to as low as 4.5% at par. Par rates are the lowest available mortgage interest rates that do not require additional points and fees known as buy down or discount points to be paid by the borrower.