Today's Mortgage Rates Declining – Mortgage Rates Sinking with 10 Year T-Yield
By: Ed Ferrara
Floating a rate? You might want to lock today. Rates are down.
The benchmark 10 year treasury yield, the best indicator for today’s mortgage rates, is down today significantly dropping to 3.31 from 3.38 (-2.19% ) overall. That’s good news for any mortgage rate shoppers out there. Last Friday the yield, which was at a 4 1/2 month low, shot up unexpectedly over 3 percent overall. As a result mortgage lenders were forced to adjust their mortgage rates for the worse. 30 year fixed mortgage rates went from near 4.5 percent to 4.875 percent at par.
Today’s 30 year fixed mortgage rate
The big drop in the yield today is a strong indicator mortgage lenders will adjust their rates for the better shortly. It’s likely 30 year fixed mortgage rates will drop an 1/8 to a 1/4 percent. Mortgage rates today opened at 4.875 percent, 30-years fixed, at par. Par is the lowest mortgage rate available any given day without any additional points required to be paid by the borrower.
Today’s 30 year fixed mortgage rates – Zillow
Zillow reports the national average 30 year fixed conforming mortgage rate at 4.96 percent. As mentioned above the drop in the t-yield is a strong indicator this figure will decline throughout the day.
What’s Driving Today’s Mortgage Rates
They say the key fed rate doesn’t directly effect fixed mortgage rates. That’s true. That being said bond prices were driven up today on speculation the fed will not raise interest rates until late next year. As bond prices go up, yields, which move the opposite go down. Fixed mortgage rates tend to move with the yields.