15 Year Mortgage Rates Inch Above 4.75%

Posted on | July 16, 2009 | 1 Comment

15 year mortgage rates inched above 4.75% this morning for the first time in two weeks.  While this may not seem like a big deal, the movement of average mortgage rates is starting to get disheartening to current home owners looking to refinance.  The government has worked very hard to push mortgage rates lower, yet the trend is show higher lows and higher highs in the 30 year fixed rate trend channel.  For the 30 year rate, approximately 5.05% looks like the short term low for this pull back whereas 4.8% was the low for the previous pull back.  If rates trend higher, the next short term low could be as much as 5.5%.  Overall, it looks like 15 year mortgage rates and 30 year mortgage rates have started an uptrend.

This uptrend was slightly visible when the uptrend of the 10 year treasury rate yield was pointed out several months ago.  That uptrend was in jeopardy recently but it looks as if that too will continue higher.  If the 10 year yield continues higher and through 4% you can be rest assured that mortgage rates are going to break 6%.  Who really knows what this will do to the housing market, but it will definitely cause a stir in the mortgage market.

If you have been considering buying a new home or refinancing, now might be as good of a time as ever.  If you wait several more months, you may see mortgage rates a full percentage point higher than they current are.  There will be pull backs along the way for mortgage rates, but it is likely those pullbacks will be higher than current rates.  It is advisable to go ahead and do your research so you can lock in at historically low mortgage rates before they are gone forever!

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