SDR, have rates come down for fixed rate conforming loans only, or for other loans too?
What I’m thinking is that spreads over Treasuries are widening for bonds with credit risk. Bonds issued by the quasi-government agencies (FNMA, Freddie..) are thought to be essentially risk-free, so their rates should have gone down with Treasuries, making it possible to lower rates on the mortgages they buy. Rates on loans that can’t be sold to the agencies would have gone up, I would have guessed, especially for the riskier types of these loans.
I don’t follow home loan types and rates. Are some home loan rates going down, and some up? I am guessing that risk-free interest rates might go down a little (or just stay level for a while) while riskier rates climb, and this should flow through to home loans.
