â€œFinancial expertsâ€, newscasters, and business reporters routinely bring up the 10 Year Treasury and Fed Funds Rate as a barometer for mortgage rate direction; however, the 10Y and Fed Funds Rate (the FFR does effect 2nd loans tied to Prime Rate) have nothing to do with the determination of first mortgage rates.
This chart shows that the 10Y has a poor correlation to 30Y conforming rates:
The faint correlation you see stems from the fact that Treasury Bonds are guaranteed by the US government. Conforming loans typically pay a slightly higher return than Treasuries, but are not guaranteed.
The ONLY accurate barometer for mortgage rate trending is Mortgage Backed Securities a.k.a. Mortgage Bonds - period. Make sure you are not working with someone who has his or her eye on the wrong information.
Please see: http://docs.Steven-Anthony.com/SAR-HowMortgageRatesAreDeterm
There is ONLY ONE WAY to accurately know what a 30Y rate would be for YOUR purchase and that would be obtaining a Pre-approval - not a Pre-qualification. There is a big difference. If you have not been pre-approved I can do this for you, as I am both a Realtor and Mortgage Banker. Please make sure you are aware of the differences by visiting the link below.
There are a number of variables that influence your obtainable rate. See pg 2 of the link below for a list of these 25 items and more useful facts about mortgage rates).
Steven A. Ornellas, GRI, ABR, e-PRO, CMPS, RE Masters, MBA
REALTORÂ® / Mortgage Banker-Broker / Certified Mortgage Planning Specialist
Steven Anthony Real Estate & Financial Services
Expect Excellence. Get What You Expect.â„¢
We are hearing the same information. Unfortunately, we are all going to have to wait it out to see what this means to the real estate industry and the consumer.
Our recommendation to a serious buyer is to be in touch with a mortgage specialist and request to be included on their email updates. These will keep you informed of rate changes as they are recieved.
If you are looking to buy, work on finding the right home and less on locking in a loan which you may not even have yet. Get with an agent that can help you with this porcess and you'll be ready to take ACTION faster!
currently a conforming 30 yr. fixed is 5.5 to 5.58 and a 30 fixed jumbo is 6 to 6.8
but like the other answers I say look for it to go down. Good advice is to watch the 10 year Treasury bonds.
Realty World Viking Realty
2698 Mowry Ave
Fremont, Ca, 94538
Currently the rate for a 30-year fixed is 5%. Interest rates have been coming down lately. There is talk of lowering interest rates to 4.5% to further stimulate home buying.
To get a feeling for where the rate will be trending, keep your eyes on 10 year Treasury Bonds.