Historical Mortgage Trends
Fannie Mae 60-Day Yield
This is a fairly good historical indicator of Fannie Mae (conforming) rates for a 30 year fixed rate mortgage. The numbers below indicate Fannie Mae’s required net yield at a specific time on the first day of each month in the given year. The yield is provided by Fannie Mae each day and in volatile markets this yield can change several times during the day.
The difficulty in relying too much on this number as the correct interest rate at that moment stems from the fact that the reported number is a yield requirement and not a rate requirement. In simple terms, the yield is calculated using a fixed interest rate plus or minus what Fannie Mae will pay a lender for a loan or what the lender will pay Fannie Mae for a loan.
To add a bit of perspective to this yield requirement, a borrower might expect to pay a 1.00% loan origination fee plus normal closing cost to receive a fixed interest rate that is equal to the yield. Paying a larger loan origination fee would generate a lower fixed interest rate while paying a smaller loan origination fee would generate a higher fixed interest rate, although both all of these scenarios would theoretically produce the same net yield to Fannie Mae.
You can learn more about this concept by going to Frequently Asked Questions, "What is the rate today?"