How The Federal Reserve Board Affect Mortgage Interest Rates

The Federal Reserve Borard left interest rate unchanged at almost zero as it indicated that the economy contraction is slowing down. Financial market condition is improving in the last few months.

Mortgage Interest rate went up last week up to 5.81 due to the concerns on inflation and goverment spending, and the reason was that, 10 year treasury note went up. As of today 07/24/09 the rates are as follow:

30 year fixed 5.39%
15 year fixed 4.81%
The 10 year treasure note 3.67%

There is a rumor that the Fed may increase the interest rate by the end of 2009.