For September 22nd  Mortgage interest rates began the day up. The 15 year fixed is at 4.52% while the 30 year fixed rate mortgage is at 5.01%.  The 5/1 ARM is up to 3.94%.  Early on we are experiencing a slight increase in overall rates.  For the last few days the 10 year treasury rate yield has been stable  but from the purchases that the Federal Reserve Bank made yesterday it could get a little bit of a boost.

Change in mortgage rates since Yesterday

When it comes to mortgage interest rates little has changed since yesterday .

It will be interesting to see how the 10 year treasury rate yield acts today as yesterday when the Fed announced the purchases of US Treasuries a boost has been given to it.  When it comes to treasury purchases what will be interesting to see is that how traders feel about the Fed easing off.  Due to the reason that here would be much less money flowing into treasuries, it makes logical sense that the 10 year yield would increase.

Role of Fed

Unless we see a huge swarm of foreign investors by the end of October, that is the time when the Fed plans to stop buying treasuries, there is a probability that we are going to see a short term rally in treasury yields.  If the Fed does not watch out then this short term rally might turn into something much longer.  If this would be  the case, then the mortgage interest rates will definitely move higher with treasury yields.  With all this being said, lets us see what steps would be taken by the Fed at first.

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