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30 Year Fixed Mortgage Rates Continue to Remain Low

Posted on | October 20, 2009 | No Comments

The average for 30 year fixed mortgage rates remains extremely low when looking at the average historically.  Some mortgage media outlets are illustrating the 30 year fixed mortgage rate at levels below 4.8%.  Zillow.com is currently reporting 30 year fixed mortgage rates at 4.77% which is the lowest we have seen in several months.  If we continue to see a drop in treasury yields we are likely to see mortgage interest rates continue lower.

The 10 year treasury rate yield dropped under its 50 day moving average today which might be a sign that yields are set to drop.  If the next level of support does not hold, the 200 day moving average, we could see mortgage interest rates that approach new all time lows.  The only reason we saw mortgage rates increase over the summer was because the 10 year yield was up trending.

Over the summer the 50 day moving average served as support and it now looks as if the 50 day moving average is going to be a point of resistance.  Eventually something is going to have to give; either the 50 day moving average will be broken to the upside or the 200 day moving average will be broken to the downside.  These two moving averages are slowly getting extremely close to each other so it will be interesting to see what happens.

WIth the government working very hard to keep mortgage interest rates low, it seems quite likely that the Federal Reserve Bank or government in general is going to greatly assist in pushing treasury yields lower.  As treasury yields decline mortgage rates are sure to follow.  The 10 year treasury rate yield and the 30 year fixed mortgage rate have had a strong correlation since 1971 and that has not changed in 2009.

If you have been thinking about refinancing or getting your first mortgage now is one of the best times in history.  If you continue to wait for mortgage rates to hit all time lows you might be risking mortgage rates moving higher.  If the government ever takes their hand out of the pot and lets the market set interest rates we are sure to see mortgage rates move higher quickly.

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Author: Jeremy North

Category: 30 Year Fixed Mortgage Rates

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