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Wells Fargo Refinance Mortgage Rates – Interest Rates Moving Higher

Posted on | October 28, 2009 | No Comments

Wells Fargo refinance mortgage rates are likely to move higher as the week goes forward.  The 10 year treasury rate yield has moved well above its 50 day moving average and looks to be in a strong up trend.  The 30 year fixed rate mortgage and the 10 year treasury rate yield have had a very strong correlation since 1971 and that trend continues into 2010.

Wells Fargo has been consistent with their mortgage rates being similar to the advertised conventional mortgage rates.  As always, each lender is a little bit different with their lending practices so you will not see the exact same mortgage interest rate from every lender.  With that being said, there seems to be little deviation from conventional mortgage rates when it comes to Wells Fargo mortgage rates.

The Federal Reserve Bank has worked very hard to keep mortgage rates low by buying mortgage backed securities (MBS) and US Treasuries.  The Fed is going to stop buying US Treasuries at the end of October so this is sure to affect mortgage rates but by how much?  With the Fed continuing their MBS purchase program it is not likely that we are going to see a drastic move higher in rates, are we?

If the 10 year yield continues its up trend much higher then one would think that the market is going to actually help to set mortgage rates.  That being said, every single time the yield pushes mortgage rates higher we see Federal Reserve Bank chairman Ben Bernanke or the president himself make a speech about how the government or Fed is going to do everything they can to keep interest rates low.

There is little doubt that now is one of the best times in history to get a low mortgage rate.  If you have been thinking about refinancing now is the time.  Do not pass up this opportunity to lock into a mortgage rate under 5%.  There are many lenders, including Wells Fargo, who are advertising mortgage rates under 5% so make sure to not let this opportunity slip by.

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Author: Jeremy North

Category: Wells Fargo Mortgage Rates

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