US Mortgage Rates: US Mortgage Rates Remain Low Treading Water at 5%.
By: Ed Ferrara
Mortgage rates continued to tread water this morning. Conventional 30 year fixed mortgages remain as low as 5% with zero buy down points according to our research of wholesale mortgage lender’s mortgage rates. 15 year fixed mortgage rates are as low as 4.5%. A 5/1 ARM can be obtained as low as 3.75%. These mortgage rates do not include buy down points but do include normal points and fees associated with a mortgage.
The benchmark 10 year treasury yield, a leading indicator for US Mortgage Rates is unchanged today as of 10:00 am PST. It remains at 3.46. Tuesday afternoon the yield closed at 3.526.
As the Fed sets to wind down it’s TALF program for RMBS (residential mortgage backed securities) analysts are speculating mortgage rates will spike. How quickly US mortgage rates rise will depend on how comfortable investors are with the Fed’s exit strategy. The TALF program was set up specifically to free bank’s cash making it available for them to lend and also to keep mortgage rates low. The program is credited with keeping mortgage rates near record lows all year