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Home Mortgage Loan Rates – Rates Continue Lower into December?

Posted on | November 16, 2009 | No Comments

Home mortgage loan rates are very close to an all-time low. We have recently seen a 30 year fixed mortgage rate as low as 4.66%. The all-time low for mortgage interest rates is 4.61% on a weekly basis. Any drop below this level of a daily basis would not constitute an all-time low but it would have to be a weekly average.

Many borrowers are wondering if these mortgage rates are to continue lower into December. No one knows where mortgage rates may go in the future but it is highly likely that they will continue to stay low it is the federal reserve bank is doing everything in their power to keep mortgage rates well. There’s a good chance that they may stay low but not hit all-time lows.

The Federal Reserve Bank continues to buy mortgage-backed securities but they have stopped buying US treasuries. By concluding their U.S. Treasury purchase program the Federal Reserve may cause treasury yields to increase. If treasury yields increased drastically there is very little doubt that we are going to see an increase in mortgage interest rates.

Since the beginning of October we have seen the 10 year treasury rate yield carve out a new uptrend but it has yet to affect mortgage rates. Mortgage interest rates have moved sideways to down while the 10 year treasury rate yield has moved up. This is often not the case as there is a strong correlation between mortgage interest rates and the 10 year treasury yield.

With this in mind it might be a very good idea to go ahead and start to lock into your low mortgage rate today. If you continue to wait and hope all time lows are coming you might miss out on an opportunity to lock into a mortgage rate under 5%. There is nothing wrong with having a mortgage interest rate of 4.75% and it might not be worth the risk to try to wait for a rate under 4.6%.

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Author: Jeremy North

Category: Home Mortgage Loan Rates

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