30 Year Fixed Mortgage Rates Remain Near All Time Lows
Posted on | November 4, 2009 | No Comments
The average for 30 year fixed mortgage rates remain very close to all time lows. We have seen the average for the 30 year fixed around or below 5% since the middle of September. It seems that no matter what treasury yields do mortgage rates continue to move sideways to down. This is proving that the Federal Reserve Bank is doing a great job of keeping interest rates low.
Eventually the market is going to set interest rates and we will see mortgage rates move up to normal levels but is doesn’t look as if that is going to happen anytime before March 2010. At the end of March 2010 the Federal Reserve Bank is going to stop purchasing Mortgage Backed Securities which is sure to make mortgage rates move higher.
Until then, it looks as if mortgage rates are going to stay at moderate levels. The Fed has eased part of the low interest rate plan by stopping their purchases of US Treasury. One would think that the stopping of US Treasuries would cause treasury yields to move higher but we have yet to see yields move up drastically.
Treasury yields have moved up and it looks as if they are carving out a steady up trend. The 10 year yield is currently above its 50 day moving average and this average has served as support over the last few days. If the 50 dma starts to move up with yields then we are in full bull market mode for yields and higher mortgage rates are likely to come.
With this in mind now is the time to get out there and refinance your current home mortgage. If you have been thinking about it in the recent past now is the time to take action. With 30 year fixed mortgage rates near all time lows there is no reason to let this opportunity pass you by. With many mortgage lenders advertising mortgage rates under 5% there is no reason you cannot lock into a low rate.
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Author: Mike Garner
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