30 Year Fixed Mortgage Rates Under 5% Today – September 29
Posted on | September 29, 2009 | No Comments
The average for 30 year fixed mortgage rates continues to be under 5% today September, 29th, 2009. The 30 year fixed is currently at 4.95% and has been below 5% since the Federal Reserve Bank meeting last Wednesday. Many analysts predicted that mortgage rates would increase after this meeting but that has yet to happen. There is a good chance that this could happen sometime in October as the Federal Reserve Bank plans to stop buying US Treasuries by Halloween.
With 30 year fixed mortgage rates near all time lows now might be the best time in recent history to refinance. Mortgage lenders are actually lending money due to the incentives that President Obama has created. Couple this with mortgage rates at low levels and it is a great time to consider a home refinance. If you wait a few months or even possibly a few weeks you might find that mortgage rates are moving up.
After the Fed stops buying US Treasuries there is a very good chance that treasury yields will move up. If treasury yields move up then there is no doubt that mortgage rates will move higher. WIth the Fed continuing to buy mortgage backed securities mortgage rates are not going to skyrocket but we could see average rates in the 5.5% range.
When the Fed stops buying mortgage backed securities we might really have some mortgage interest rate issues to deal with. The Federal Reserve Bank has continued to keep mortgage rates artificially low so what is going to happen when they finally take their hand out of the pot? No one knows the answer to this question but we could see mortgage rates go much higher when this happens at the end of March 2010 which is when the Fed will stop buying mortgage backed securities.
Overall, now is one of the best times to refinance in recent history. There is no reason to continue to wait to refinance because if you do you might miss out on the opportunity to refinance below 5%. President Obama and his staff have worked very hard to keep interest rates low so please do not let this opportunity slip by.
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Author: Alan Lake
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