30-Year Conventional - Slightly Lower
Jumbo - Relatively Unchanged
FHA & VA Programs - Slightly Lower
The party may not last long. The Fed meets again at the end of October, and the committee could vote to reduce the pace of bond purchases, as James Bullard, president of the Federal Reserve Bank of St. Louis, reminded investors this week.
The Fed has been spending $85 billion per month in these purchases to stimulate the economy and keep rates low. Once the Fed pulls back on the program, mortgage rates may shoot up.
Unless economic data show significant improvement in the economy before the next Fed meeting, it's unlikely the Fed will take action.
Another factor that could affect mortgage rates in coming days is the threat of a potential government shutdown. If Democrats and Republicans don't come to a budget agreement soon, the government could shut down starting Oct. 1.
A shutdown could push rates up or down, depending on how investors react to the threat, says Pava Leyrer, president of Heritage National Mortgage.
In the event of a shutdown, the confidence of consumers, including homebuyers, would take a hit, she adds.
"My big concern is homebuyers are going to pull back because this is going to affect everybody in one way or another," she says. (www.bankrate.com )