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Daily Mortgage Rates Right at 5% – Time to Refinance in September?

Posted on | September 3, 2009 | 1 Comment

Daily mortgage rates are about to get very interesting.  We saw mortgage interest rates hit 5% on September 1st and if we happen to break the 5% floor it could get very interesting for the overall housing market and mortgage industry.  We have not seen mortgage rates this low since late May and 5% has definitely been a psychological floor that mortgage rates have not been able to break through since the beginning of the summer.

Just as it is starting to cool off in several parts of the United States we are seeing mortgage rates cool off as well.  The up trend that we saw for much of the summer in mortgage interest rates was mostly due to the fact that the 10 year treasury rate yield was in a strong up trend.  That up trend has been broken and the 10 year yield is now moving sideways to down.  To make it even more alluring for lower mortgage rates, the 10 year yield is below its 50 day moving average and the average is heading down as well.

These are all signs that point to lower mortgage rates in the near future.  It will be a fun and exciting time to be in the mortgage industry and it will be even more fun if you are able to go through the refinancing process and lower your mortgage to an interest rate under 5%.  If you have the income to refinance to a 15 year mortgage you could actually get a mortgage rate very close to or below 4.25%.  Over the course of your home loan, this could save you tens of thousands of dollars.

Overall, this is one of the best times in recent history to refinance your home.  Mortgage lenders are actually lending money and mortgage interest rates are flirting with 5%.  The only issue that may arise is the fact that everyone will want to refinance their homes at these low mortgage rates.  Stay ahead of the crowd and have your mortgage application ready to be submitted when everyone else is just getting theirs started.

It should not be difficult to find a mortgage lender that is offering rates below 5%.  There are ads all over the television and Internet for companies who want your business and will provide you with a very low mortgage interest rate.  It might be a good idea to call a few of these companies and see who might end up giving you the better deal.

Author: Heather Best

Category: daily mortgage rates
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Comments

One Response to “Daily Mortgage Rates Right at 5% – Time to Refinance in September?”

  1. Rich
    September 4th, 2009 @ 4:42 am

    Thanks Heather but I wonder if you might include a lender-rating service website as well. For example I pull up a refi I am looking for at bankrate.com and see the following lenders I have never heard of:
    Integrity First Financial Group
    Close Your Own Loan
    Aim
    among others and wonder if these guys are legit. Certainly we are all a bit more cautious than we used to be and I think it might help to have some direction here. Really appreciate your blog/column if you will.

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