Prices of mortgage-backed securities are down this morning on excellent economic news. Mortgage rates move the opposite MBS prices and are now at risk to reach 5% for the first time in weeks. Stocks are up on soaring GDP growth, 5.7% in the fourth quarter of 2009, the fastest pace in 6 years. The Dow is up over 100 points. Mortgage rates typically suffer during great days for stocks as investors take money out of bonds and move to the stock market looking for better profits. Bond prices suffer as a result. Mortgage bond prices move yields and mortgage rates in the opposite direction. The benchmark 10 year treasury yield, used to forecast current mortgage rates, is up to 3.68, +0.17 (+4.85%) as of 7:34 AM PST. Many mortgage industry professionals use the 10 year treasury yield to decide when to lock or not to lock mortgage rates for their clients.
To find the lowest mortgage rates in your area conduct a local mortgage rate search.
Current Mortgage Rates – 30 year fixed, FHA, Jumbo
30 year fixed mortgage rates, which have held steady at 4.75 and 4.875% all week are now at risk to edge up to 5%. 15 year fixed conforming mortgage rates are stable at 4.25% where they’ve been unchanged for most of the past few months. The 5/1 ARM is also stable at 3.875%, up from 3.75% earlier in the week.
FHA mortgage rates have been slightly better than conforming mortgage rates. Current 30 year fixed FHA mortgage rates are as low as 4.75% and at risk to reach 4.875% and possibly 5% by the end of the day. We’ll keep you posted.
Jumbo mortgage rates remain as low as 5.75%, 30 years fixed.
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