Update 11/14/2011: mortgage rates are at all time lows for 30 year fixed, 20 year fixed, 10 year fixed, and arms on Fannie Mae mortgage rates. Compare mortgage lenders and fannie mae mortgage rates at compare-mortgage-rates/mortgage-rates/
Update 06/15/2011: mortgage rates remain stable. 30 year fixed rates mid 4's. Arm rates super low. High Balance rate still low.
Update 05/06/2011: mortgage rates decreasing. Oil drops $10/barrel. Treasury Bonds and Fannie Mae Mortgage Backed Securities Rally. Prices increase and yields decrease.
UPDATE 08/14/2010: 30 year fixed mortgage rates and refinance mortgage rates drop to an all time low 3.75%
Fannie Mae Rates are determined by pricing and yeilds on Fannie Mae Mortgage Backed Securities. Simply put these are bond issues backed by Fannie Mae Mortgages.
There are various Fannie Mae Mortgage Backed Security coupons being traded daily and they are 4.0 coupon, 4.5 coupon, 5.0 coupon, 5.5 coupon, and the 6.0 coupon. These investments are traded just like regular stocks and bonds on Wall Street. The buying and selling of these Mortgage Backed Securities will determine how secondary pricing deparments will determine current daily pricing which will determine available fannie mae mortgage interest rates.
When traders start buying up Fannie Mae Mortgage Backed Securities the price increases and the yeild decreases. This will typically spur the secondary pricing departments at various lenders accross the county to increase the pricing at a particular rate, or improve rates. The actions they take depends on the net price increases on the underlying Fannie Mae Mortgage Backed Securities at a particular coupon rate.
The opposite is also true when traders start selling off Fannie Mae Mortgage Backed Securites forcing secondary to decrease pricing on delivery of a particular Fannie Mae Mortgage Rate, or increase Fannie Mae Mortgage Rates. Again, their actions depend on the net price decreases on the underlying Fannie Mae Mortage Backed Securites at a particular coupon rate.
Current Pricing on the Fannie Mae Mortgage Backed Securities has been increasing as demand for 4.5 and 5.0 coupons have been increasing. This has pushed Fannie Mae Mortgage Rates down once again creating an excellent opportunity to capture near all time low mortgage rates. Today's current Fannie Mae mortgage and interest Rates:
Thanks for the info Jeff - how long do you expect rates to stay this low? What is your forecast for rates at the end of 2010? I've heard many people mention that rate increases are coming in the 2nd quarter?