30 Year Fixed Mortgage Rates Move Higher in November?
Posted on | October 23, 2009 | No Comments
The average for 30 year fixed mortgage rates has been around 5% since the beginning of September. As October concludes there is a strong possibility that mortgage interest rates could move higher in November. The Federal Reserve Bank is going to conclude its US Treasury purchase program by the end of October would could push treasury yields higher.
At the beginning of October, we at Subprime Blogger, predicted that there would be a short term rally after the yield hit its 200 day moving average. This is exactly what happened and treasury yields have worked their way all the way up to the 50 day moving average. The next movement in treasury yields will be determined by the movement off the 50 day moving average.
If the 10 year yield can push much higher than its 50 dma then we are likely to see a long term up trend that pushes treasury yields to 4%. This summer the main reason we saw mortgage rates push higher, well above 5%, was the fact that the 10 year treasury yield was moving higher. You can could on higher mortgage rates if this happens again in November.
Many home owners and future home owners would like to know if mortgage rates do go higher just how high will they go? In all reality no one knows the answer to this question. If we use the summer as an indicator then 4% treasury yields will cause mortgage rates to rise to around 5.6%. Predicting this is very difficult because the government continues to do what it takes to keep interest rates extremely low.
If you have been thinking about refinancing now is one of the best times in recent memory to do so. Mortgage interest rates being below 5% is a true gift to your financial life. Many home owners would do almost anything to get a mortgage rate under 5% and you have the opportunity if you take the necessary steps. Make sure to do your research before you sign on the dotted line.
Please make sure to return to Subprime Blogger for all your mortgage and financial news. To stay up to date on the current state of finances make sure to bookmark the current news category below.
Author: Alan Lake
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