Today's mortgage rates seem to be still coming down. Even after the Federal Reserve announced that it may withdraw from the mortgage market, the loan rates are still easing. Observers expect Fannie Mae and Freddie Mac to fill the vacuum, but that's not known fact yet. The banks have a special interest to keep the rates low.
While it's not known if Freddie Mac and Fannie may will fill the gap when the Fed completes its 1,250 billion dollar purchase program of Mortgage Backed Securities the banks may and should act to do everything possible to keep the current mortgage rates low and keep homeowners in their houses.
According to Expected Returns there are seven million homeowners that currently are behind their mortgage payments. This is potential 7 million foreclosures in 2010. If these people start foreclosing because of the belief that they are paying more than what the house is worth everyone will be hurt: people, banks and the economy.
The taxpayers bailed out the banks and now is the time for the banks to take their fair share of burden and they may do that out of their interest. The banks may choose to reduce the mortgage rates for these homeowners or reduce the principle that families and mortgage loan holders own. The banks will report some losses to shareholders. However, this will help to keep the 7 million homeowners in their houses and prevent bigger economic problems.
This thinking may be behind the fact that the today's mortgage rates are still low and not going up even after Fed's announcement. The year 2010 may be a big year for foreclosures if you consider the story published in November in the Wall Street Journal and titled "One In Four Borrowers is Under Water."
In the meanwhile here is how today's mortgage rates are.
Wells Fargo mortgage rates are updated at 9AM EST. The 30-year fixed rate is 5.25. The 15 year rate is 4.50. The 5-year ARM is 4.00 percent.
According to Bankrate.com the national average rates have come down this week significantly from last week's numbers. The 30 yr. fixed mortgage rate is 5.27, down from last week's 5.33. The 15-year rate is 4.76 percent, which is down from last week's 4.67. The 5/1 ARM is 4.43, down from 4.52. These are national averages.
Zillow shows national averages more in line with Wells Fargo's mortgage rates. The current 30 year fixed rate there is 5.00 percent. The 15 yr. fixed is 4.42 and the 5/1 is 3.99.
Written by Armen Hareyan
HULIQ.com
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