Daily Mortgage Rates – Interest Rates Dropping to 5%?
Posted on | August 20, 2009 | No Comments
Daily mortgage rates have been quite volatile during the month of August, but they are currently down trending. We have seen average mortgages fall from 5.5% to under 5.1% in less than two weeks. If you have been thinking about refinancing or getting your first mortgage it might be a good idea to go ahead and get your mortgage application ready because when interest rates drop below 5% there is going to be a swarm of mortgage applications submitted.
Average mortgage rates below 5% is exactly what this economy needs right now. Even though the government is forcing interest rates lower, if we see the refi boom we have been waiting for, there will be much more money in circulation. The lower interest rates that all the current home owners get will put much more money in their pockets and hopefully some of that money will go right back into the economy.
The biggest worry I have is the fact that the Federal Reserve Bank is going to stop buying US Treasuries in September. This is likely to help the 10 year treasury rate yield start to up trend again which is exactly what we do not need for mortgage rates to stay below 5%. It is definitely a psychological barrier to break 5% but if the 10 year yield starts up trending again, we are going to go right back above 5% and we could get a whip lash effect and see daily mortgage rates go much higher.
Either way, now is a great time to get out there and try to refinance your home. You have probably seen advertisements all over the Internet and television for companies offering mortgage rates below 5%. I often hear that people think they cannot get an interest rate this low. Well, you will never know if you can get a rate this low until you actually get out there and contact some of the lenders who are advertising rates this low.
Overall, now is one of the best times in history to get a low mortgage rate. For two reasons it would be advisable to go ahead and get that mortgage application in. If we see rates below 5% there will be a huge amount of applications submitted and you don’t want to get stuck in this mess. Also, in September, the Fed is going to stop buying US Treasuries so you might not want to wait and see what daily mortgage rates do after this happens.
Author: Tiffany Mann
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