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Refinance Home Loan Rates – Save Money on Your Mortgage

Posted on | October 19, 2009 | No Comments

Refinance home loan rates have reached levels that many home owners are finding to be quite attractive.  To save money on your mortgage, refinancing at a lower mortgage interest rates is a great option.  The conventional 30 year fixed mortgage rate is well below 5% and has been below the 5% level for over a month now.  By locking in at these current levels you could end up saving hundreds of dollars on your mortgage payment.

For much of the summer we saw mortgage interest rates above 5%.  The reason that mortgage rates were above this level was because the 10 year treasury rate yield was finishing its up trend that lasted for over half the year.  Once the 10 year yield rolled over and started heading lower we saw mortgage interest rates start to work their way back down to below 5%.

If you have been thinking about refinancing now might be as good of a time as any.  The 10 year yield has been in a down trend but has recently hit support at the 200 day moving average and has moved higher.  If this move turns into a long term trend there is a chance that mortgage rates could see higher levels very soon.

The Federal Reserve Bank has been working very hard to keep the 10 year treasury rate yield lower which would keep interest rates low.  The problem we are now facing is that the Fed is going to take their hand out of the pot and they are going to stop buying US Treasuries by the end of October.  It is great the the government is allowing the market to set interest rates but they might have made it much worse by pushing down rates artificially.

With this in mind, going through the mortgage refinance process right now would be a good choice.  If you continue to wait for mortgage rates to drop you might wait a little bit too long and see mortgage rates closer to 6% than 5%.  There are many companies that are still advertising mortgage rates below 5% so do your homework and find out if these lenders will work out for you.

Please check out our unemployment forum where we encourage you to post comments below whether it be a strategy you used to get a job, possible tips or links to those who are unemployed or even a rant about your previous employer and how they laid you off.  Anything goes as long as there are no obscenities or direct insults to other posters.

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Author: Alan Lake

Category: Refinance Home Loan Rates

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