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Government Mortgage Refinance Plan – Will Bernanke Keep Mortgage Rates Low?

Posted on | November 9, 2009 | No Comments

The government mortgage refinance plan has allowed many homeowners to refinance in extremely low mortgage rates. The year of 2009 is going to be one of the years in which mortgage rates are at their lowest levels in the history of data being collected on mortgage rates. With this in mind, many people are asking if Ben Bernanke will keep mortgage rates low?

Since March of 2009, the Federal Reserve Bank has bought mortgage-backed securities and US treasuries. At the end of October, the Federal Reserve Bank decided that it would stop buying US treasuries. Most analysts thought that this would increase treasury yields which in turn would increase mortgage interest rates. This has yet to happen as mortgage rates continue to be low.

The 10 year treasury rate yield has moved off its 200 day moving average through its 50 day moving average and its uptrend in much higher. With this being the case most people thought the mortgage interest rates would move well above 5%. Fortunately for many homeowners mortgage rates have stayed low even though the 10 year treasury rate yield has moved up in strong fashion.

With the government doing its best to keep mortgage rates low now might be the time for you to refinance your home loan. Pres. Obama and his administration have worked very hard to keep interest rates below 5% of all homeowners could benefit. If you are a homeowner who stands to benefit by refinancing your home loan now is the time to take action.

There are many mortgage lenders out there who are currently advertising mortgage rates under 5%. Bank of America, Wells Fargo, and many other mortgage lenders are more than willing to help you get a low mortgage rate in today’s economic environment. There is no reason that you cannot refinance at a lower rate and end up saving thousands of dollars a year on your home loan.

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Author: Tiffany Mann

Category: Government Mortgage Refinance Plan

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