Current VA Loan Rates said the 30 year fixed VA Loan mortgage rate on its Mortgage Marketplace is 3.94% currently, up from 3.75% yesterday, which was the lowest recorded rate since the VA Loan Rate Site launched its marketplace in April 2008.

The company said the 30 year fixed VA Loan mortgage rate rose to 4% Friday, hovered between 3.750% and 3.880% for the rest of the weekend, and dropped to 3.75% before rising to the current rate early Tuesday morning.

VA Loan Rate website Current VA Loan Rates said Tuesday its real-time rate on 30-year fixed VA Loan mortgages rose for the first time in three weeks, although it nonetheless remains quite low.

The rate for a 15-year fixed home loan is currently 3.13% from 3.12% a week earlier. The rate for a 5-1 adjustable-rate mortgage VA Loan is 2.65%, up from 2.48%; a 5-1 ARM has an initial rate that applies for the first five years of the loan and then adjusts annually.

Many VA Loan trackers have reported rates at or near historic lows lately, as worries about European debt pressure yields on U.S. Treasury bonds. Mortgage rates tend to follow the yields.

Current VA Loan Rates real time mortgage rates are based on information submitted daily from the Veteran Loan Administration.

Lock in your VA Loan Rate: The 10 Year Treasury Hits a New Record Low

The 10-year Treasury has entered uncharted waters, helping to keep VA Loan mortgage rates at historic lows.

A year ago, many Veteran and Active duty service member homeowners thought they were facing a once-in-a-lifetime opportunity when the yield on the benchmark 10-year Treasury hovered around 2.4 percent in the autumn, before shooting up in December. Yet, the benchmark actually dipped below 2 percent this month, closing at 1.93 percent Sept. 9, the lowest yield in history.

And VA Loan mortgage rates are as low as they’ve ever been. Veteran Loan Administration is quoting 10-year VA Loan mortgages at around 4.4 percent, about 15 basis points (bps) lower than Veteran Loan Administration, and all in rates on seven year deals are around 4.1 percent

Civilian Lenders Fannie and Freddie are basically right on top of each other, though Freddie seems to have a slight advantage over Fannie on 10-year deals just due to its inherent underwriting model. Fannie Mae uses an underwriting floor of 5.5 percent—a tool for sizing loans—which can make a deal less advantageous to the borrower. But Fannie has been very willing to consider flexibilities.

“For the right borrower and property, Fannie Mae is going to step up,” says Amanda Ward, a senior vice president at All American Lending Inc a California based lender. “I’ve been able to get some pretty significant waivers with respect to lowering the debt service coverage requirements subject to that floor, which substantially increases proceeds.”

Not to be outdone, the Veteran Loan Administration is quoting all in rates for 10-year refinance and acquisition loans in the low–3-percent range. And life insurance companies like Prudential, MetLife, and New York Life continue to remain aggressive, pricing significantly inside on trophy deals.

While the agencies and life insurance companies remain aggressive, the Mortgage Back Securities market is another story entirely, the ugly duckling of the debt markets right now.

It’s been a wild ride for conduits this year. In June, Mortgage backed Security loans were pricing with spreads of about 225 bps over the swap, making them competitive with Fannie and Freddie for the first time in years. That dynamic didn’t last long Civilian lenders are now quoting spreads of about 400 bps over the swap on the 10-year Treasury, leading to all-in rates around 6.1 to 6.3 percent.

The health of the Mortgage Back Securities market will be recalibrated soon, though. A flurry of new issuances from the likes of Morgan Stanley/Bank of America, J.P. Morgan, Goldman Sachs/Citigroup, and Wells Fargo/RBS—will come to market over the next month or so. And how investors view those deals will go a long way in determining how competitive the Mortgage back Security market will be into 2012.

“The results that come out on the Bank of America deal, along with the deals that follow over the next 60 days, will decide where Mortgage back Security pricing stabilizes,” says Ward. “If it goes well, that sets the stage for some reasonable stability in Mortgage back Securities for 2012, which we need as an industry.”