Juicy Estates: Mortgage Blog

Mortgage Interest Rate Update

Last week stocks reacted favorably to talk on Capital Hill about addressing the flawed “Mark-to-Market” accounting rule.  Typically big up days in the stock market would push MBS prices lower and mortgage interest rates higher however rates remained essentially the same. 

Currently 30 year fixed rates for conforming loan amounts are 5% with no points and for Jumbo mortgages the 5/1 ARM is at 5.375% and the 30 year fixed rate is at 6.625% through the Private Mortgage Bank.

Housing starts in the U.S. unexpectedly surged in February however this is widely believed to be a temporary “up tick”. 

The Fed is meeting on Wednesday and as usual the minutes from this meeting will be parsed by traders of both equities and bonds for any indication that a second stimulus package may be needed.

UPDATE – BREAKING NEWS! 

3-18-09 ~ 2:38 pm

The Fed has just stated that it intends to spend as much as $750 Billion on the purchase of mortgage backed securities.  Lower mortgage rates just ahead.

This entry was posted on Tuesday, March 17th, 2009 at 9:01 am and is filed under Home, Interest Rate Updates, Mortgage News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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