Are you interested in seeing the trend in government-back mortgage interest rates? The easiest way is to track the yields on the 10 year Treasury Note, also called the 10 year T-Note. While this is only a rule of thumb way to track rates, it is one of those rules of thumb that is generally reliable and useful.
What we are seeing lately is that the par rate, or rate that requires no buy down, on 30 year fixed conventional (Fannie/Freddie) mortgages have been coming in at roughly 2% higher than the yield on the 10 year T-Note. For instance, the yield on the 10 year T-Note closed at 2.59% yesterday. The par rate on 30 year fixed conventional mortgages was roughly 2% higher than that, coming in around the mid 4’s. With FHA and VA loans the par rate has lately been coming in about 1.6% higher than the T-Note yield. So as of yesterday the par rate on 30 year fixed FHA and VA loans was in the very low 4’s.
Keep in mind that there are other factors involved in mortgage rate trends so this rule of thumb is just that; a quick, rough way of estimating trends. Also, this is just the current trend on 30 year fixed loans — rates for government-backed 15 year mortgages or the various ARM mortgages available tend to be significantly lower than 30 year fixed rates.
The good news is that mortgage interest rates remain very low by historical measures. That is excellent for anyone looking to buy a home. It is also good news for anyone looking to refinance to a better mortgage. Contact us today for more guidance on available programs and rates.