(Ed.note--this is from Yahoo Finance.)
Loan Type Today Last Week
30 Year Fixed 6.09% 5.80%
15 Year Fixed 5.49% 5.16%
1 Year ARM 4.69% 4.59%
It is hard to follow the reason why the 15 year mortgage rate would rise .33 over last week, when the Fed is infusing large amounts of money into the banking system---their efforts have certainly not resulted in any effect on mortgage applications that I can see. One pundit last week said that this was because banks were scared of solvency issues, and with the problems of unemployment, consumer credit and foreclosure, banks may be unsure of the real risks to their current portfolio. In an illiquid market, when homeowners cannot move to other areas to take jobs when their circumstances change, personal loss results in banking loss as well. Stay tuned.
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