Today's Mortgage Rates Fall Slightly As Fed Buys More Treasury

As part of the $300 billion Treasury purchase program, the Federal Reserve Bank of New York bought $7 billion in Treasury’s maturing between 2013 and 2016 to cap borrowing costs and reduce Mortgage Rates.

The operation which begun in March has seen the central bank buy $197.723 billion in U.S. debt through the operations. However, people are watching Mortgage rates with a lot of interest.

Today's mortgage rates declined a bit, making it the third successive week of declines. Mortgage rates had threatened to reach the 6 percent mark last month. However, current mortgage rates on a fixed 30-year mortgage rate are averaging 5.40 percent, losing from the high of 5.70 percent recorded on June 15, 2009.

There is no doubt that the lower rates on mortgage loans will spur Housing prices to shoot up again. Home prices have been declining for the past few years.

The 15-year fixed rate mortgage interest rates also declined this week to 4.87 percent, down from the prior week’s middling rate of 4.93 percent.

Refinance Rates, Jumbo Mortgage, Adjustable Rate Mortgage and Interest Only Mortgage also plummeted this week.

Jumbo Mortgage rates recorded the biggest fall with 30-year jumbo mortgage rates falling to 6.33 percent, down from the previous week’s average mortgage rate of 6.51 percent. The Fixed 15-year jumbo mortgage rates declined to 5.92 percent, down from preceding week’s average rate of 6.05 percent.

Jumbo adjustable mortgage rates recorded a bigger decline compared to the conforming mortgage rates. Conforming one year adjustable mortgage rates average rate is 4.59 percent, compared to the previous week of 4.61 whereas Average rates on jumbo one year adjustable mortgage rates stood at 5.53 percent, down from 5.71 percent recorded last week.