Interest Rates Up Slightly in FNMA Auction
Interest rates rose slightly in the Federal National Mortgage AssociationÛªs (FNMA) latest auction of $200 million in mortgage purchase commitments.</br></br>The average gross yield to! FNMA Tuesday on $45.6 mil-! lion of three-month commitments; was 9.04 per cent, up from 9.01 per cent in the previous auction two weeks ago.</br></br>The average yield on $117 million of six-month commitments was 8.99 per cent, up from 8.97 per cent while the rate of $37.5 million worth of proposed construction commitments was 8.95 per cent, up [from 8.94 per cent. ,</br></br>FNMA said it would issue commitments for between $200 million and $250 million in mortgage purchases of its next auction scheduled Sept. 22.</br></br>The association, a government-spawned private corporation, purchases FHA and VA backed mortgages at a discount to help stabilize the mortgage markets.