FHA Loan Rates – Refinance Your Mortgage Under 5%?
Posted on | September 17, 2009 | No Comments
FHA loan rates have continued to drop as average mortgage rates broke 5% earlier this week. We have seen 30 year fixed mortgage rates around 5% for quite some time but the 5% floor continued to serve as a point of support. Last weekend and earlier this wee we saw mortgage interest rates go all the way down to 4.91% which is a strong break of 5%. Now that the 10 year treasury yield is down trending as well, we are likely to see mortgage rates go south.
FHA loan rates are usually a little bit higher than average mortgage rates but they too are going towards historical lows. The lowest recorded 30 year fixed mortgage rate was 4.78% which was earlier this year. It will be very interesting to see if we can test those levels again and break through to new lows. The biggest reason that mortgage rates stayed above 5% during the summer was the fact that the 10 year yield was completing its up trend. Now that the up trend is over we are likely to see overall interest rates lower.
If you have an FHA loan or any type of home loan in general, now is one of the best times in modern history to go through the refinance process. President Obama has urged lenders to start lending money again and mortgage rates are near all time lows. To make it even more exciting there is a new spark of interest in the housing industry so you might find that your home values are starting to increase as well.
You have probably seen advertisements all over the Internet and television for mortgage rates near historical lows. It is very possible that not all of you will have access to these rates but you still might benefit by going through the refinance process. Unless you have a mortgage rate under 6% you are likely to benefit from current mortgage rates. It would be advisable to go ahead and start the refinance process as it can take some time.
Do not let this opportunity pass you up. If you chance it and try to time mortgage rates at the very bottom you might find yourself looking at mortgage rates back near 6% before you know it. The Federal Reserve Bank plans to stop buying US Treasuries at the end of October so this could cause a short term rally in treasury yields and interest rates. Do not wait too long or you will miss this great chance.
Author: Jeremy North
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