Home Mortgage Loan Rates – Rates Increase to 5.15%
Posted on | August 28, 2009 | No Comments
Home mortgage loan rates dropped below 5.1% earlier this week but it looks like we are going to close out this Friday with mortgage interest rates around 5.15%. For most of this week we have seen average mortgage rates between 5.05% and 5.2%. This narrow range is to be expected after a few weeks of extremely volatile mortgage rates. For most of August, we saw the 30 year fixed rate mortgage between 5% and 5.5% but there were heavy weekly swings each way until this last full week in the month.
It will be quite interesting to see where the first week of September puts us as for as home mortgage loan rates. It looks like the 10 year treasury rate yield has broken into a down trend or at least a sideways moving trend so this would indicate that mortgage rates should head lower. It seems that every single time we think that is going to be the case there is a strong move up in the 10 year yield. The 50 day moving average is now moving down and should serve as overhead resistance though so we will see if that does happen.
If we do see the 10 year yield stay below its 50 day moving average, we are likely to see average mortgage rates fall below 5%. This will be very exciting if this does happen because we have not seen mortgage interest rates this low since the beginning of April. If we do see the psychological floor broken there will definitely be an increased interest in the overall mortgage industry. No one really knows if there will be a refi boom but the amount of mortgage applications will definitely increase.
If you want to stay ahead of the crowd it would be wise to go ahead and do your research now before rates do drop below 5%. If you wait to do your research and start your mortgage application until after mortgage rates fall below 5% you will get stuck in with the rest of the crowd and that is not good news. You will likely be on the bottom of the stack of mortgage applications in the lenders office.
By getting all the legwork done now, you can submit your application right when rates go below the 5% level. By doing that you will avoid the logjam that is likely to occur. If you want to play it on the safe side, submitting your application now is not a bad idea at all because we are still very close to all time lows when it comes to 30 year mortgage rates.
Author: Alan Lake
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