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Home Mortgage Loan Rates – January Mortgage Rates Above 5%

Posted on | December 23, 2009 | 1 Comment

Home mortgage loan rates have moved up very quickly.  We are currently seeing the 30 year fixed rate mortgage around 5% while just a few weeks ago it was hitting an all time low of 4.5%.  This strong move higher leads many people to believe that mortgage interest rates are likely to be above 5% when January rolls around; this is not good news for those that were expected to see a “Refi Boom.”


Even though mortgage rates are near 5% they are still very close to all time lows when looking at a historical chart.  The all time low that was achieved in late November is not that far away.  With the Federal Reserve Bank working very hard to keep interest rates low there is nothing set in stone when it comes to mortgage rates.  With that being said, eventually the market is going to set interest rates and they are likely to be higher.

The 10 year treasury rate yield and the 30 year fixed rate mortgage have had a very strong correlation since 1971 when Freddie Mac started collecting mortgage rate data.  When the 10 year yield moves higher mortgage interest rates tend to follow.  This is the exact reason that we have seen mortgage rates move up so quickly over the last month.  The 10 year yield has moved from 3.2% all the way up to 3.75% since the beginning of December.

It will be very interesting to see what January of 2010 brings but one thing is for certain; there will be a huge increase in interest in the mortgage rate market.  We at Subprime Blogger continue to track daily mortgage rates and hope to give you some valuable insight as to where mortgage rates are headed.  Please make sure to come back daily to get your commentary on the mortgage market.

Author: Alan Lake



Category: Home Mortgage Loan Rates

Comments

One Response to “Home Mortgage Loan Rates – January Mortgage Rates Above 5%”

  1. Mortgage Rates, Christmas Gift Ideas and More : Church of Cowherd
    December 23rd, 2009 @ 10:19 pm

    [...] Home Mortgage Loan Rates – January Mortgage Rates Above 5% Home mortgage loan rates have moved up very quickly. We are currently seeing the 30 year fixed rate mortgage around 5% while just a few weeks ago it was hitting an all time low of 4.5%. This strong move higher leads many people to believe that mortgage interest rates are likely to be above 5% when January rolls around; this is not good news for those that were expected to see a “Refi Boom.” [...]

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