Dr. Ed’s
Economic
Indicators

30-YEAR MORTGAGE

Release Date: Daily
Release Coverage: Month-End Results
Released By: Fannie Mae
Official Release: Market Rates
http://www.efanniemae.com/syndicated/documents/mbs/apeprices/archives/cur30.html

The data presented on Dr. Ed's Economic Chart represents Fannie Mae Rates for a 30-Year Fixed Rate 30-Day Commitment. The mortgage rates committed through Fannie Mae may include points and have a 30-day commitment. These mortgage rates are wholesale rates and will reflect lower yields than those published as retail rates. These retail rates generally include a servicing fee that is applied as additional basis points. (i.e., in the newspaper or bankrate.com's survey).

WHAT DR. ED SAYS:

This particular indicator can serve as a benchmark for your institution's current rates or the rate you are currently paying. As rates begin to fall, mortgage applications generally will climb. Bank customers will want to refinance or purchase homes given that credit is available. It may also be interesting to watch the mortgage rates and the changes in housing starts. The 30-year mortgage rate should also be monitored against other rate-related indicators, such as the treasury spread, prime rate, and LIBOR.

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