Mortgage Rate Bulletin Sept. 28th

Are you sick of this yet?  Mortgage rates hit their all time lows this week on Wednesday.  Thirty-year fixed rate loans touched 3% if you pay a point (APR of 3.167)… so basically this is getting cray-cray, or to use a technical term, “bananas”.

What is causing this?  Combination of the new unlimited QE3 followed by more turmoil in Europe.  There was violence in the streets in Spain and Greece this week.  I think this will continue to create rates trending lower.  Today at 6 p.m. the ratings agencies are going to come out with their new rating of Spanish debt offerings.  Many believe this rating will be that of “junk” status, which has huge implications for us, as this will push a lot more money into US Treasuries, forcing rates lower still.

We ain’t seen nothing yet, I’m afraid.

Below is what we are seeing today on 30-year Conventional loans and 30-year FHA loans.

Hopefully this post will help you have a better handle on what the situation is for you as you spend time shopping around the real estate market.  Keep in mind, these rates are for owner occupied purchases with optimal credit conditions, and are priced with no upfront points on a 30-day lock.

Conforming 30YR Rate: 3.375% APR: 3.445%
FHA 30YR Rate: 3.25% APR: 4.204%

Check back with the Oregon Mortgage Blog for the latest news and updates on mortgages and home loans from James Adair at Portland Home Loan.

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