30 Year Fixed Mortgage Rates – Refinance Interest Rates Around 4.88%
Posted on | January 27, 2010 | No Comments
At the present time 30 year fixed mortgage rates are around 4.88%. For the entire month of January refinance interest rates have not broken the tight range of 4.8% to 5%. This is very unusual as the month of December saw a large range of 4.49% to 5.35%. It will be interesting to see where mortgage rates go as February gets closer.
Many analysts and CEOs who predicted that interest rates are likely to rise in the near future. The CEO of J.P. Morgan Chase, Jamie Dimon, has stated that he has restructured the strategy of his financial corporation to benefit from a higher interest rate environment. Jamie Dimon is often considered one of the best bankers on Wall Street so when he talks people usually listen.
The Boston Federal Reserve Bank chairman feels that mortgage interest rates are going to start moving up in the spring of 2010 as this is when the Federal Reserve Bank will stop purchasing mortgage-backed securities. Since March of 2009 the Federal Reserve Bank has been purchasing mortgage-backed securities to keep mortgage rates low. At the conclusion of this program you can expect mortgage rates to move higher.
It will be very interesting to see how the overall market reacts to interest rates moving up. For the entire month of January there has been no significant move higher for mortgage interest rates. When mortgage rates break the 5% mark it will be quite interesting to see how the 10 year treasury rate yield reacts and how the overall market reacts to this possibility of much higher mortgage rates in the near future.
Author: Alan Lake
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