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30 Year Fixed Mortgage Rates – JP Morgan Chase Rates Under 5%

Posted on | December 28, 2009 | No Comments

The average for 30 year fixed mortgage rates is currently right at 5%. J.P. Morgan Chase mortgage rates have went from 4.5% at the end of November all the way up to 5% at the present time. Conventional 30 year fixed mortgage rates have went for quite a wild ride over the last month year and much of this is due to the fact that the 10 year treasury rate yield has moved up from 3.2% to 3.8%.


Over the last 39 years the 10 year treasury rate yield and the 30 year fixed rate mortgage have had a very strong correlation. That correlation has loosened up a little bit this year as the Federal Reserve bank has bought mortgage-backed securities but there is still a strong correlation. Every time the 10 year treasury rate yield moves up mortgage interest rates tend to follow shortly thereafter.

The same happened in the month of December 2009. At the beginning of December the 10 year treasury rate yield was at 3.2%. As the month move forward the 10 year yield moved up and is now currently sitting at 3.8%. With this move higher mortgage interest rates also moved up from 4.5% to 5%. It would not be surprising to see mortgage interest rates continue to move higher if the 10 year treasury rate yield continues its uptrend.

If you are hoping to lock into a low mortgage interest rate from J.P. Morgan Chase then you might want to get started as soon as possible. If you continue to wait you may find that mortgage rates start moving towards 5.5%. The Federal Reserve Bank is going to stop buying mortgage-backed securities by the end of March 2010 and this is likely to push mortgage rates another .5% to 1% higher.

Most homeowners and future homeowners would like to time the bottom for mortgage rates but this is nearly impossible. Unfortunately, it looks like the all-time low for mortgage interest rates will have been at the end of November 2009. At that time mortgage rates were around 4.5% but this is not likely to happen again in the near future. The Federal Reserve is sure to keep interest rates low for an extended period of time but it will not last forever.

Author: Alan Lake



Category: 30 Year Fixed Mortgage Rates

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