Current Mortgage Rates – October 7, 2009

Mortgage rates have been going down since late 2008 and the beginning of this year. Lower U.S. Treasury yields and the Federal Reserve have played an active role in lowering mortgage rates to come to the rescue of the housing market. 

Most economits believe that  the Fed won’t raise interest rates until the middle of 2010 when the economy and housing market starts to recover. 

The Fed Funds rate has been in a target range of 0% to one quarter percent since late last year when the credit crises hit and the recession started. The Federal Open Market Committee decided to keep the targeted Fed funds rate in the current range for now. Current mortgage rates will also remain in the current low range until the economy recovers and inflation becomes a threat. At that point the Feds will start raising interest rates again.

As of today, 30-year conforming mortgage rates are currently at 4.97 percent. 15-year conforming mortgage rates are at 4.45 percent, down from the prior week’s average 15-year mortgage rate of 4.47 percent. 5/1 adjustable rate mortgages are nearing 4.00 percent, the current 5/1 adjustable mortgage rate is at 4.11 percent, down from the previous week’s average mortgage rate of 4.20 percent.