Lending Landscape - Turkey Day Edition

Welcome to a special Thanksgiving Day version of the Lending Landscape. Mortgage rates have dropped significantly this week and recent activity by the stock markets have sent bond rates down even further than official numbers reflect.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan fell to 6.20 percent for the week ended Nov. 21 from 6.24 percent the prior week. At this time last year, the 30-year FRM averaged 6.18 percent.

The 30-year rate has not been lower since the week ending May 10, 2007, when it averaged 6.15 percent, Freddie Mac said.

Since these rates were released on Tuesday, the benchmark 10 year bond that affects long term mortgage rates has fallen to levels not seen for several years.

The yield on the 10-year Treasury note fell below 4 percent for the first time in two years early Wednesday.

The 10-year note was later up 24/32 with a yield of 4.01 percent, down from late Tuesday's 4.09 percent.

Despite falling rates, the government sponsored enterprises that help the production of mortgage loans, Fannie Mae and Freddie Mac are struggling. How that will affect borrower's ability to obtain new loans has yet to be determined. So far no recent changes have happened that affect borrowers.

Homes Today wishes you and yours a Happy Thanksgiving.