Another Small Shift in Mortgage Rates this Week

 

Another Small Shift in Mortgage Rates this Week

Mortgage rates have only shifted slightly this week. The 30-year fixed rate and the 5-year adjustable rate both fell to 3.79% and 2.76%, respectively. The 15-year fixed rate, on the other hand, rose to 3.04%.

On Friday, August 31st, the Federal Reserve held their summit to discuss current economic conditions. After the meeting, Chairman Ben Bernanke made a speech which helped keep the mortgage rates low. Although he did not let the public know exactly what the Federal Reserve is going to do, he said enough to get investors worried about the economy. After Bernanke’s speech, the U.S. Treasury and mortgage bond yields lowered due to the demand for them.

The Federal Reserve is not the only thing keeping mortgage rates low. The European debt crisis is also helping keep the rates low. That might be changing soon, though, as the European Central Bank held a meeting on Thursday, September 6th. At this meeting, the European Central Bank had decided that they will begin a bond buy-back program. This could give investors a little more confidence in the European nations, so not as many people will be investing in the U.S. Treasury bonds or the mortgage bonds.

Mortgage rates can never be predicted, especially now with the United States economy and the European debt crisis. We will just have to wait and see what happens next.