Government Mortgage Refinance Plan – 30 Year Fixed Mortgage Rates Nearing 5%
Posted on | February 1, 2010 | No Comments
The government mortgage refinance plan was created to help homeowners save money over the next several years. By refinancing to a lower mortgage interest rate many homeowners could save a significant amount of money on their home loan. Unfortunately, it looks as if 30 year fixed mortgage rates are nearing 5%.
For much of the first month of the year analysts have predicted that mortgage rates are going to rise in 2010. During the entire month of January the 30 year fixed mortgage rate has been between 4.8% and 5%. Just recently we have seen a 30 year fixed bounce off 4.8% and start moving up.
The 10 year treasury radio has been in a strong uptrend since the beginning of December. The uptrend has seen a slight pullback during the month of January which has helped to stabilize mortgage rates. At the present time the 10 year treasury rate sits on its support level of the 50 day moving average.
If the 10 year yield bounces off the 50 day moving average you can be rest assured that mortgage rates are going to start moving up with the yield. Earlier today we saw 30 year fixed mortgage rates around 5% before moving back down to the 4.9% area. Do not be surprised if 30 year fixed mortgage rates move above 5% in early February.
Author: Jeremy North
Comments
Leave a Reply