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Beatrice Said:

The fed adjusts short term interest rates. What affects long term rates such as a 30 year fixed mortgage?

We Answered:

Yes the mortgage rates follow the 10 year bond. So you can go to yahoo finance and click on the ten year bond and you will be able to compare that to interest rates. We watch it for our loans in float waiting to lock them for our clients.

Gregory Said:

What affects the 30 year mortgage rate?

We Answered:

Anticipated inflation is the main thing that affects all long term rates. You should see a difference between US gov rates and other rates due to the risk of default.

Try and do regressions against many series for Treasury data, 1-year, 5-year, 10-year and 30-year.

What can you get with alternative investments if you weren't lending on mortgages? Look at S&P 500 yield and S&P 500 average P/E ratio.

Rene Said:

Where do you think 30 year conventional mortgage rates will be by spring?

We Answered:

No I don't think they will increase to over 5% by the spring. December and January are slow months in real estate. I would predict 4%-4.6%

Clinton Said:

Will 30 year fixed rate mortgage rates ever go down?

We Answered:

Just like everything else they will go down and they will go up. I have been in real estate 30 years and seen a lot of things happen that "everyone" said would never happen.

A practical answer to the question I think you are asking is that I do not believe that mortgage rates will be much lower anytime soon, they might be higher within the next year. Investors that provide the money for 30 year mortgages are worried that inflation is coming back and they are reluctant to commit to low rates.

Rafael Said:

Why do 30 year mortgage rates continue to rise, while the fed continues to lower the fed funds rate?

We Answered:

the fed rate you're refering to is the rate for overnight borrowing to what is in the industry referred to as window loans - loans that keep the banks liquid amounts where the government requires.

funding for mortgages, which are long term by nature, comes from investors. there are still too many nervous people hessitant to invest in mortgages again.

so basically, these two pools of money come from different sources and while one might be inclined to think they should move the same direction, there is nothing that really ties them together.

Angela Said:

Will 30 year mortgage rates drop below 6% anytime soon similar to what they were in February and March 2008?

We Answered:

Unfortunately, I don't think we are going to see those great rates again any time soon.

But who knows?

Glenn Said:

What are current 30 year mortgage rates at?

We Answered:

You can do 30 year fixed at about 6.5%, assuming 20% down and 720+ credit score. Lower down payment or credit score will increase your rate.

Cosigner - long story short, unless that person intends to live there as their primary residence, then you're out of luck. Most traditional banks want the cosigner to live there so they would face the possibility of losing their residence if the note doesn't get paid.