Where are Mortgage Rates Going in 2010? New All Time Lows in January?
Posted on | December 2, 2009 | No Comments
Many home owners are excited to see mortgage rates very close to an all time low but many of these borrowers would like to know where mortgage rates are going in 2010. With the 10 year treasury rate yield below its 200 day moving average many analysts feel that mortgage interest rates could continue to move lower. We are currently seeing the 30 year fixed rate mortgage around 4.6% but have seen it as low as 4.49%. If the 10 year yield continues to drop could we see 4.25% in January?
The Federal Reserve Bank has done everything in their power to push mortgage interest rates to all time lows. For much of the year they purchase US Treasuries and now they continue to purchase mortgage backed securities. The plan is to continue to purchase mortgage backed securities through the end of March 2010. With this being the case we can assume that mortgage rates are going to stay below the 5% level until the Fed stops buying mortgage backed securities.
If the 10 year treasury rate yield continues to move lower there is very little debate that mortgage rates will hit an all time low in January. If this is the case there is a very good chance that we are going to see a huge refinance boom. Last March, when mortgage rates were at their previous all time low there was a huge increase in the amount of refinance applications submitted. Look for this to be the case again in December of this year and January of 2010.
If the current economy and your financial struggles have gotten you down make sure to check out the inspirational blog My Life After Retail. The blog is an account of the journey to find peace of mind and happiness in today’s society.
Author: Jesse Wojdylo
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