Home Mortgage Loan Rates Move Up; 6% the Next Stop?
Posted on | August 10, 2009 | No Comments
Home mortgage loan rates have moved up for the last week and this trend seems like it is likely to continue. We saw the 10 year treasury rate yield shoot up over 10% last week which pushed mortgage rates from 5.05% all the way to 5.45%. This is very bad news for anyone who was waiting for mortgage rates to drop below 5%. It looks as if mortgage rates are going to be above 6% before they go below 5%. There are still companies out there that are advertising mortgage rates under 5% but it seems unlikely that many borrowers will have a chance at this right now.
If you are in the process of refinancing or getting your first mortgage it might be smart to speed up the process. If you delay the process or even wait, you could be staring at mortgage rates in excess of 6%. It seems to be the case that most home owners that are trying to refinance have lost interest when mortgage rates get around the 6% mark. It will be interesting to see if this is the case in the near future.
Overall, it looks like mortgage rates are going to continue to move higher. The 10 year yield has been in rally mode since the beginning of 2009 and it looks like there is little that is going to change that. It is advisable to contact some of the lenders that are offering mortgage rates under 5% as this is not likely to be the case in a few months or even a few weeks.
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