Mortgage rates

10yr ARM at 3.325% right now..down very slightly..mortgage broker told me that banks margins are thin as is and dont expect a huge move further down on feds plans or treasury moves..we can be in a situation where treasury yields fall, but lending rates dont fall nearly as much as expected/hope..fed fail

I have been told that because of the switch in Fed strategy, the 15 years fixed went slightly up from it's low of 3.25%. I was wondering under what conditions the 30 years fixed will get below 4% and if such rates actually will hurt the banks to the point that lending will decline?

urbandigs - mortgage broker is not telling the truth. Margins right now are quite large. Reason they are not lowering their rates so quickly is that they have too many current applications to deal with and not enough processors. So until the backlog goes away we wont see much lower rates. Of course they can hire people back but why do that if noone else is doing it (competition). This way they are getting good spread (rates they charge buyers vs. yields where they sell) and they will not lose market share. Now if a bank starts hiring (wants to win market share) than this is a different story.

National 30-yr rates jumped well below 4% over the past two days. National average is 3.85% now.

http://www.mortgagenewsdaily.com/mortgage_rates/daily.aspx

I was told by several banks that 30 year fixed jumbo is 4.5% now.