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Wells Fargo Refinance Mortgage Rates – Current Rates Headed Lower?

Posted on | November 1, 2009 | No Comments

Wells Fargo refinance mortgage rates are extremely low when looking at a historical chart of mortgage rates.  Since the beginning of September mortgage rates have been at or below 5%.  With this in mind is it possible that current mortgage interest rates could be headed lower?  There is a strong chance of this being the case if the 10 year treasury rate yield drops below its 50 day moving average.

Last week we saw the 10 year treasury rate yield conclude the week right on its 50 day moving average.  This week we will either see this serve as a strong support level and see a bounce or we are going to see the 10 year yield weaken and drop all the way back to the its 200 day moving average.  Whichever event occurs it is likely to affect mortgage interest rates greatly.

This summer we saw the 10 year treasury rate yield move much higher, almost to the 4% level.  While this was happening we saw mortgage interest rates move up drastically.  There was actually one week in which mortgage rates moved up almost .75%.  It is unlikely that this will be the case anytime soon but there might be something brewing in the treasury market.

For the first time in a very long time we are going to see treasury yields unaffected by the purchases of the Federal Reserve Bank.  The Fed has made it apparent that they stopped buying US Treasuries by the end of October.  Monday, November 2nd will be the first trading day that we get to see how treasury rates react without the Fed’s interaction.

Wells Fargo and many mortgage lenders have been advertising mortgage rates below 5%.  Now is one of the best times in history to refinance your home or make a first time home purchase.  With mortgage rates so low and lenders actually willing to work with you now would be a great time to get out there and save some money on your mortgage payment.

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Author: Alan Lake

Category: Wells Fargo Mortgage Rates

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