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Do FHA rates typically rise in the fall or early winter?

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Anonymous
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Do FHA rates typically rise in the fall or early winter?

Do FHA rates typically rise in the fall or early winter? I noticed they are creeping back up.

 

Also, since there will probably be a mad rush to close on houses in late November to get the tax credit, will that boost FHA rates up?

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ShanetheMortgageMan
Super Contributor

Re: Do FHA rates typically rise in the fall or early winter?

Typically end of the year they do rise a little bit, but that was not the case in 2008, as interest rates continued to fall (albeit slowly) for a good period of time (from October 2008 until late May 2009).  They spiked up end of May like I mentioned but they have gradually been  coming down since - so while they might be "up" from a specific day to another specific day, the gradual trend is downwards right now.   Mortgage rates are dependant upon mortgage backed securities (MBS) prices, MBS are a financial investment product that is traded, much like treasury bonds and stocks.  When investors are buying MBS more than investors are selling MBS, this creates a MBS price increase, and inversely decreases mortgage interest rates.  
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