The 10 year yield looks to have hit support at its 200 day moving average and has now moved up significantly.  The first level of resistance for the 10 year yield is its 50 day moving average and that was tested today.  Until there is a strong move through the 50 day moving average we believe that the up trend in the 10 year yield is not going to move mortgage rates significantly higher.

With the current up trend we do expect to see mortgage rates move above 5%.  The longer the 10 year yield remains in an up trend the more likely it is going to be that mortgage rates break through the 5% barrier.  This is not good news for those of you who have waited to refinance.  If you were planning on getting a mortgage interest rate at all time lows that might be out of the question now.

The Federal Reserve Bank is going to stop their treasury purchase program by the end of the month which is likely to push treasury yields even higher.  The current up trend is likely due to this fact so it might already be baked into the 10 year yield when that time does come.  Even if that is the case there is still a strong possibility that there will be a long term up trend in yields at that point.

Several mortgage lenders are still advertising refinance mortgage rates under 5% so it would be a good idea to contact these companies and start the mortgage application process.  If you wait several weeks to start this process you might find that mortgage rates are much closer to 6% than they are to 5%; do not let this great opportunity pass you by.

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Author: Mike Garner

The Federal Reserve Bank has stated that they are going to stop buying US Treasuries by the end of October.  The plan was initially to stop purchasing treasuries by the end of September but Ben Bernanke and the Fed presidents decided they would extend the program through October.  When the Fed does stop buying treasuries we can only hope that foreign investors jump in and soak of some of these investment vehicles.

If foreign investors are not interested in treasuries at current levels we are going to see the yields start to increase.  As yields increase mortgage rates start to go up.  With the amount of money the Fed has been sinking into treasuries we could see a HUGE move up in yields if foreign investors are not interested.  This is very bad news for average mortgage rates because they are sure to shoot up with treasury yields.

Most analysts feel that Ben Bernanke and President Obama have worked too hard to let this slip through their fingers.  Interest rates are at historic lows and average mortgage rates have been under 5.6% for the entire year of 2009.  One slip up and we could see mortgage rates shoot all the way up to 6% or higher.  The Fed always has the option to extend the program and thats what I think will happen.  Until we start to see the economy get even better the Fed will continue to keep mortgage rates low.

With this in mind, now is the time to go through the home refinance process.  With mortgage rates extremely close to 5% now is the time to lock in and get the deal of a lifetime.  If you decide to wait and time the bottom of rates you might find that you miss the boat and end up forgoing a chance to refinance near or under 5%.  There are many lenders who are currently advertising mortgage rates under 5% so it wouldn’t hurt to contact them now and take the necessary steps to get your home refinanced.

Author: Jesse Wojdylo

This is exactly what happened back in late May when mortgage rates moved up almost .75% in one week.  Well, this past week saw similar movements.  On Monday, mortgage rates were around 5.05% and by Friday we saw mortgage rates at 5.45%.  A .4% move in one week is quite significant.  It will be very interesting to see if this type of movement continues next week.  If the 10 year treasury rate yield continues to move higher it is likely that we will see mortgage rates near 6%.

If you have been thinking about refinancing or getting your first mortgage, it would be wise to contact some of the lenders that are still advertising mortgage rates under 5%.  You will never know if you can get mortgage rates this low if you do not ask.

• Daily Mortgage Rates
• Mortgage Rate Forecast
• Mortgage Rate Trends

With this being said, expect refinance rates to continue to follow the 10 year yield.  I am still trying to analyze if the yield hit the lower trendline and bumped back up.  This sure looks to be the case from this chart.  Maybe some of the technical analysts out there can help me out because I thought the trendline was broken last week; obviously I misread the lower trendline.  That being said, if the 10 year treasury rate yield pushes higher, refinance rates are sure to follow.

Overall mortgage rates have already pushed up this week and it may continue if the 10 year yield continues higher.  After a 4% leap in one day we could see consolidation tomorrow.  If the uptrend that started back in January continues on the 10 year, look for refinance rates to continue higher throughout the summer.  It is very difficult to predict right now because the Federal Reserve Bank has so much influence so we can only base our decisions on their moves.

I will be very interested to see the data next week when the amount of mortgage applications do come in.  I would think that we will see a huge number as mortgage interest rates have decreased quite a bit in one week alone.  If you have been considering getting a refinance and have been pushed away by volatile mortgage rates, now might be the time to test the waters.  The Federal Reserve Bank has made it evident that they are going to do what it takes to cap interest rates, so why not take advantage of this great opportunity.

I know many of you will ask if it is smart to wait since rates are going to drop.  Well, if now is a time in your life where you have the ability to refinance, I wouldn’t wait much longer.  How many people can say that they have a mortgage rate around 5%?  There are a lot of steps when it comes to refinance, but President Obama is working hard to make sure that you get the lowest rate possible.  Use the resources you have and see what kind of interest rate you can refinance out; it never hurts to try!

Home mortgage rates have been near historical lows for quite some time now.  Even though we saw a quick move up in late May and early June, we are still at levels that most home owners would love to lock in at.  Current mortgage rates are around 5.3% and have been moving sideways over the last few weeks.  Is now the time to refinance your home loan?

The only way to answer that question is to analyze the number of YOUR home mortgage.  If you feel you can save a full percentage point and you are not concerned with shelling out some money for closing costs, now might be as good of a time as any to apply for a refinance.  If you wait until later this summer, you may find that daily mortgage rates are around 6% or higher.  There is no doubt that the government is going to do everything in their power to keep average mortgage rates low, but it seems that the uptrending 10 year treasury rate is going to take mortgage rates along with it.

If the 10 year treasury rate continues its assault on 4% like it did last month, watch for home mortgage rates to be around 6%.  If you wait to refinance at this point, it might not even be worth it when you include closing costs and the time and effort it takes to do research on mortgage rate trends and go through the trouble of the refinance appraisal.  If you have been considering refinancing your home mortgage now would be the time to do it before we see a bounce in the 10 year treasury rate.

There is a chance that the 10 year breaks down and mortgage rates do drop below 5%, but are you will to take that chance.  I truly feel that we will see a bounce in home mortgage rates shortly and that will be bad news for any of you who waited just a little bit too long to refinance.

When deciding to refinance getting the best rates available is extremely important.  One of the top searches on google for refinance is “refinance best rates.”  The best rate that you can get is solely based on your current financial status.  If you have a very good credit score and your home has increased in value since you bought it, you are likely to get a lower refinance rate than home owners who do not have that luxury.  I would strongly suggest you get a very up-to-date appraisal value before you think you owe less than what your home is worth.

Another thing to consider when looking for the best rates when refinancing is the closing costs.  If you are not going to better your current mortgage rate by at least one full percentage point, it is often not worth it to refinance due to the closing costs.  I would imagine that some of these closing costs have gotten a little out of hand with the current economy.  Mortgage lenders are doing everything they can to make a few extra dollars, so adding a few administrative fees onto a mortgage would not surprise me at all.

Overall, the best refinance rates are dependent on your financial situation.  If you feel you have done very well in making sound financial decisions, you could get an extremely low rate that will save you thousands of dollars over the course of a mortgage.

Over the last few weeks, we have seen mortgage rates go for quite the ride; up from 4.8% to 5.59%.  Most of this uptick has come from the fact that the 10 year treasury rate has been in bull market mode since the beginning of 2009.  Just last week, the treasury yield hit right under 4% but has pulled back greatly.  With this pull back, I expect to see mortgage rates do the same thing.  The greatest concern I have is not the fact that mortgage rates are now hovering around 5.6% but the sentiment of the American public.  If you ask anyone who is attempting to buy or refinance a home, they truly believe that mortgage rates are going to the moon.

As I have said for quite some time, most current home owners would have take a 5.5% mortgage in a heartbeat when they bought their first home.  It is not like mortgage rates are high historically speaking. That being said, we all know that the old adage “what have you done for me lately” is in full force with the housing market.  Well, what the housing market has done lately is lose 1/3 of its value and given very volatile mortgage rates.  With that being said, I believe we will see mortgage rates start to stabilize in late June as there is no way that the 10 year treasury rate can continue it’s meteoric rise.  There must be a pull back sometime and hopefully it comes sooner rather than later.

Mortgage rate predictions for June 18th:

30 year fixed rate mortgage – 5.54%

After many months of an up trending 10 Year Treasury Yield, it looks like mortgage rates are following the treasury notes lead.  Over the past few weeks, the treasury note has surged from 3% to over 3.8%.  This strong uptrend has definitely sent mortgage rates much higher.  Unfortunately, it looks as if the yield is not stopping at 3.8%.  I fully expect the 10 year treasury yield to test 4% before we see any pullback.  This means that rates could hit 5.5% of higher in the very near future.

With rates going up as they are is home loan modification even going to help home owners?  Many home owners have debating refinancing or getting a modification, but if rates are going to continue to uptrend the way they are, there is no point in going through the process if you can’t save at least one basis point on your mortgage rate.  Do you think that the housing market is in great trouble now that mortgage rates are headed higher?