Government Mortgage Refinance Plan – Home Mortgage Rates Under 5% in January
Posted on | January 27, 2010 | No Comments
The government mortgage refinance plan was created to help homeowners locked into low overall mortgage interest rates. At the present time home mortgage rates remain under 5% in the month of January. The 30 year fixed mortgage rate has been below 5% for the entire first month of the year.
Since the beginning of 2010 the 30 year fixed mortgage rate has been between 4.8% and 5%. This comes after a month in which the 30 year fixed mortgage rate had a range of 4.49% to 5.35%. This narrowing range could be a sign of things to come. Many analysts have predicted that mortgage rates are likely to move up in the near future, as early as the spring of 2010.
The Federal Reserve Bank has been purchasing mortgage-backed securities since March of 2009. In March of 2010 the Federal Reserve is going to conclude this program which is likely to push mortgage rates higher. Many analysts feel that the conclusion of this purchase program is going to push mortgage rates up .5% to 1%.
If mortgage rates are likely to move higher in March then it is a good idea to get your mortgage refinance application submitted today. With the government working very hard to keep interest rates low you do not want to let this opportunity pass you by. Eventually the markets are going to start setting interest rates again and it is likely that we will see mortgage rates closer to 6% and 5%.
Author: Jeremy North
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