Mortgage Rate Round Up – June 28, 2008

Here’s this weeks’ mortgage rate update:

• Fed stays put on rates
• Mortgage rates improve as bonds rally
• National average of 30 year fixed rate down to 6.25% (VA average is about the same)
• 10 year treasury dipped under 4% for the first time in two weeks
• 30 year loans are still cheaper today than a year ago

Graph courtesy of Bankrate.com. Stats courtesy of Darran Anthony, Suntrust Mortgage.

Weekly Mortgage Rate Update

This is the first in a weekly series of posts regarding mortgage rates. The posts are aimed at keeping you in tune with what’s going on with mortgage rates currently and why.

The weekly mortgage rate update will be published every Saturday beginning this Saturday. The source of the information will be Darran Anthony of Suntrust Mortgage in Leesburg, Virginia, as well as other local and national loan officers and sources.

So here’s today’s mortgage rate update:

• Mortgage rates are rising this week
• The national average on a 30 year fixed is up from 6.125% to 6.375%

Here are some of the reasons why rates have are rising:

• A weak employment report last Friday
• Federal Reserve worried about inflation
• Soft demand for mortgage back securities

In a nutshell, rates are climbing due to weak economic figures, supply and demand and fear. But a mortgage rate of 6.375 percent is still great when compared to rates over the past 30 years. Buyers are still sitting pretty when it comes to mortgage rates.