Mortgage Rates Slip

12/29/2005

U.S. Treasuries staged a big rally on Tuesday when the first inversion occurred, hoping that this would send a signal to the Fed that it is time to halt its rate-hike program. At that time prices rose and yields, which move in the opposite direction of prices, slid to their lowest levels since the end of September. As a result, mortgage lenders who base their rates on yields, began to edge rates down on select products. Some rates, however, are straddling the line between a higher and lower rate. For example, some lenders are holding the 30-year fixed at 6 percent, while others have edged it down to 5.875 percent. Some rates, however, moved down without hesitation.

At 4 p.m. EST on Thursday, AVERAGE mortgage rates (zero discount points) based on rates collected nationwide were:

The 30-year Conventional Fixed-Rate Mortgage was at 5.938 percent from 5.966 percent on Wednesday.

The 15-year Conventional Fixed-Rate Mortgage was at 5.521 percent versus 5.534 percent on Wednesday.

Friday is the last day of trading for the week, the quarter and the year. Volume is likely to be light as investors attempt to extend a long holiday weekend. If the markets close flat, mortgage rates will have little reason to stray far from present levels.

Mortgage Rates Steady

12/28/2005

Treasury yields and prices move in the opposite directions. Today's relatively small change in yields was not significant enough to influence lenders to alter their rates.

At 4 p.m. EST on Tuesday, AVERAGE mortgage rates (zero discount points) based on rates collected nationwide were:

The 30-year Conventional Fixed-Rate Mortgage was at 5.966 percent from 5.973 percent on Tuesday.

The 15-year Conventional Fixed-Rate Mortgage was at 5.534 percent versus 5.557 percent on Tuesday.

Although Treasury yields edged up on Wednesday, the move was probably not substantial enough to cause lenders to tamper with mortgage rates.

Mortgage Rates On The Way Down

12/27/2005

The sharp decline in yields, which hit their lowest levels since late September, supported mortgage rates, however. Lenders who use yields as a guide to set rates were able to begin edging them down on many products.

At 4 p.m. EST on Tuesday, AVERAGE mortgage rates (zero discount points) based on rates collected nationwide were:

The 30-year Conventional Fixed-Rate Mortgage was at 5.973 percent from 6.001 percent on Friday.

The 15-year Conventional Fixed-Rate Mortgage was at 5.557 percent versus 5.58 percent on Friday.

Given the decline in Treasury yields on Tuesday, lenders could be influenced to keep on edging rates down.

Mortgage Rates Steady

12/23/2005

Mortgage rates softened slightly early on Friday then edged back up to flat levels during a shortened pre-holiday session that saw Treasury yields fall again as prices staged another smart advance.

At Noon EST on Friday, AVERAGE mortgage rates (zero discount points) based on rates collected nationwide were:

The 30-year Conventional Fixed-Rate Mortgage was at 6.001 from 5.994 percent on Thursday.

The 15-year Conventional Fixed-Rate Mortgage was at 5.58 percent versus 5.587 percent on Thursday.

After Friday's Treasury yield slippage in very thin pre-holiday trading, mortgage lenders likely will keep rates steady to softer over the weekend, waiting to see whether the Treasury market gives back its price gains early in the new trading week.