DE Mortgage Rates: Delaware Mortgage Rates Could Move Higher
By: John R. Thomas
DELAWARE — Feb. 24, 2010 (FreeRateUpdate.com) – Delaware Mortgage rates moved higher at the end of last week after big sell off in mortgage backed securities causing lenders to reprice interest rates for the worse. Mortgage rates have stopped moving higher and have appeared to stabilize for the moment.
Rates could move higher again this week with a new round of treasury auctions which add more supply for fixed income investments which is bad news for mortgage rates. Even with the move higher last week, rates are still at all time lows and now is a great time to buy or refinance a home in Delaware.
The Federal Reserve also raised the Federal Discount Rate which is the rate the Feds charge banks to borrow money from the Federal Reserve. The rate was increased from 0.5% to 0.75% and took effect today. The feds said it shouldn’t effect the consumer but treasury yields increased because of the news.