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30 Year Fixed Mortgage Rates – How Low Will They Go?

Posted on | November 13, 2009 | No Comments

The current 30 year mortgage rate is around 4.68%. This is the lowest levels we have seen since May when mortgage rates were around the same level. The all-time low for the 30 year fixed mortgage rate is approximately 4.61%. The all-time low is actually an average of an entire week so a one-day move to this level would not constitute an all-time low.

Average 30 year fixed mortgage rates have been trending below 5% since the beginning of September. Prior to September mortgage rates were between five and 5.5% for much of the summer. After breaking the 5% floor it has been a steady move lower for the average mortgage rate. Now is one of the best times in history to refinance your current home loan.

If you have been thinking about refinancing but are hoping to wait until all-time lows are reached you are taking a huge risk. The Federal Reserve Bank stated that they are no longer to buy US treasuries as of November 1. Without buying treasuries there’s a good chance that the treasury yield will start to uptrend. We have seen this since the beginning of October as the 10 year yield has moved higher off its 200 day moving average.

It is generally the case that the 10 year yield and 30 year fixed mortgage rate move in the same direction. That makes this a very unique time as the 30 year fixed mortgage rate continues lower as the 10 year treasury rate yield moves higher. There is a very good chance that mortgage rates will eventually start to move up but the Federal Reserve is doing its best to keep them lower in the near term.

There many mortgage lenders out there who are advertising mortgage rates well below 5%. If you are bad credit borrower you might not be able to get a mortgage rate this low but there’s still a chance that you would benefit by refinancing your home mortgage. You could save hundreds of dollars a month on your mortgage payment that could go to other bills and debts.

Please make sure to return to Subprime Blogger for all your mortgage and financial news. To stay up to date on the current state of finances make sure to bookmark the current news category below.

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Author: Alan Lake

Category: 30 Year Fixed Mortgage Rates

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