Home Mortgage Rates Continue Higher – 5.5% this Weekend
Posted on | August 9, 2009 | No Comments
Home mortgage rates continue higher this weekend as they are currently at 5.5%. As I stated on Friday, mortgage rates have seen a steady move higher for the entire week. Now that we are at 5.5% where is the next move. The 10 year treasury rate yield rallied over 10% last week which was on of the main reasons for the move in mortgage rates. That being said, where are rates going this week? Are treasury yields going to continue to rally?
Well, no one knows the answer to that question but the treasury yield has been in rally mode since the beginning of 2009 and nothing looks to have changed. Once the 10 year yield breaks 4% it could get very ugly for mortgage rates. If mortgage rates react the way they usually do, we are going to see rates in excess of 6% in the very near future. This is exactly what most home owners and future home owners did not want to see.
If you have been waiting to refinance, I would suggest you go ahead and speed up the process. If you wait a few months or even a few weeks, you could be staring into 6% mortgage rates. This would almost make it pointless to refinance and would definitely discourage first time home buyers.
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