Bond auctions were highly successful today fueled by attractive yields. The Fed's auction drew unexpected demand driving yields which drive mortgage rates down.Current Mortgage Rates: 30 year fixed mortgage rates are as low as 5% today without any buy down points. The 5/1 ARM another Fannie Mae, Freddie Mac backed product is as low as 3.75%. This is quite an improvement from late last week when average fixed rates were being reported as high as 5.65%. These rates apply to most FHA Loan products also.
A major factor in today's mortgage rate improvement was the disappointing retail sales data released today. Retail sales which were expected up were down and point to a slower recovery than expected. Also the US Dollar remains strong with little to no signs of current inflation. That's always a positive for investors looking to purchase US Bonds.
The Dow was up over 100 points early but finished the day up just over 36 points after the retail sales data led to a sell off.
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