Mortgage Interest Rates

Year Fixed at 4.85%

Mortgage interest rates for October 7th, 2009 have started the morning mixed. The 30 year fixed mortgage rates is down to 4.85% while the 15 year fixed is up to 4.45%. The 5/1 ARM is also up to 3.94%.

Volume has been extremely light with the quotes so these numbers are likely to change throughout the day. Check back in to Subprime Blogger later and we will have updated numbers around 1:00 eastern time with our VA home loan mortgage rates article. The 10 year yield is likely to have a strong influence on rates today but we shall see.

The Federal Reserve Bank continues to buy mortgage backed securities and US Treasuries keeping mortgage interest rates lower but when is the market going to swallow the fact that the Fed is going to stop buying US Treasuries. With markets predicting the future one would think that very soon treasury yields will start to rally because by the end of October the Fed will not be injecting any money into this US vehicle.

There is a chance that we have seen this rally begin as the 10 year treasury yield has been up each of the last three days. Even though yesterday was not a convincing move higher, it was a close higher nonetheless. If this truly is a rally in the yield look for the 50 day moving average to serve as the next true level of resistance. That level will be around 3.48% while the yield is currently at 3.25%. This is going to be a very interesting month.

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