Home Mortgage Loan Rates – Interest Rates Continue to Drop
Posted on | September 17, 2009 | No Comments
Home mortgage loan rates continue to drop through the middle of September. Mortgage interest rates are very close to all time lows and those levels could be taken out in the very near future. The Federal Reserve Bank has worked extremely hard to keep interest rates low and it is paying off. Mortgage interest rates are now around 4.93% and they could trend lower into the end of the month.
Home mortgage loan rates got all the way up to 5.59% during the summer months but most of that was due to the fact that the 10 year treasury rate was finishing is up trend which lasted almost six months. The up trend was the main reason we saw the 30 year fixed rate mortgage move from 4.78% all the way up to 5.59%. With that being said, these levels of mortgage rates are still well below any other year. Upon years end we will see that this is the lowest yearly average for mortgage rates in history.
Knowing that mortgage rates have been this low, many American home owners have refinanced already. If you are not one of the Americans who has refinanced it would be advisable to go ahead and get started. The Federal Reserve Bank has stated that they plan to stop the purchases of US Treasuries by the end of October so that might leave mortgage rates in an up trend that is not pretty.
Mortgage interest rates have been held historically low by the actions of the Federal Reserve. When the Fed stops sinking money into treasuries and mortgage backed securities we could very well see a whiplash effect and mortgage rates could go higher very quickly. When the money being invested by the Fed stops mortgage rates could move to 6% in the blink of an eye. This is definitely not what you want to see if you have yet to refinance.
There are many mortgage lenders that are already advertising mortgage rates under 5%. There is no reason that you cannot find a lender that will be willing to help you get the low refinance rate that you want. If you find that a lender has bad customer service or is not willing to inform you of your rates then you have the ability to walk out and go to the next lender. The competition for your business is fierce so make sure to pick a lender that suits you best.
Author: Alan Lake
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