30 Year Fixed Mortgage Rates – 5.15% Today
Posted on | August 31, 2009 | No Comments
The average for 30 year fixed mortgage rates is currently sitting around 5.15% today but has fluctuated between 5.05% and 5.2% for the last week. The 10 year treasury rate yield continues to decline so there is little reason for mortgage interest rates to move up. This is not to say that there will not be a reversal at the beginning of September but as of right now average mortgage rates looked to be ready to drop even more.
Looking at a chart of 30 year fixed mortgage rates you will notice that rates have hit the 5% level several times over the last few months but each time there has been a bounce. This bounce has often led mortgage rates back up to 5.5% before that becomes the ceiling. For the entire year of 2009, the highest that the 30 year fixed mortgage rate has gotten is 5.59%. Historically speaking, this is still very low.
There has not been the amazing refi boom that many people were expecting in 2009 but it could definitely start if we see 30 year rates drop below the 5% floor. The current 5% floor is a psychological level that many home owners want to be under. If the national news starts reporting that mortgage rates are under 5%, it is almost a guarantee that there would be a renewed interest and many people would submit a mortgage refinance application.
Mortgage lenders are getting ready for a large amount of applications to be submitting in September for this reason alone. Americans have psychological levels that they have to break or get above before they take action. An example is salary. I think we all know someone who refuses to buy a new car until they are making over $50,000 a year. We all know someone who will not buy a boat until they are making over $75,000 a year and so on and so forth.
There is no difference with mortgage rates. Many home owners feel they should refinance if they see mortgage rates under the 5% mark. The difference in 5.05% and 4.95% is virtually nothing but that big round number of 5. It is truly amazing how the human brain works but that is a discussion for another time and another place. Overall, this is a great time to get out there and start your research of refinancing your current mortgage. If your mortgage rate is over 6% you could greatly benefit by refinancing now.
Author: Alan Lake
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