FHA Loan Rates – Average Mortgage Rates Moving to 6%?
Posted on | August 10, 2009 | No Comments
FHA loan rates are very likely to move much higher as average mortgage rates are up almost a .5% in the last week. The 10 year treasury rate yield rallied last week causing mortgage rates to skyrocket. This is bad news for home owners who were looking to refinance and future home owners. If they were waiting on the sidelines for mortgage rates to move below 5% they may have missed the chance of a lifetime. Mortgage rates are now above 5.5% and it is very likely that they are going higher. With the treasury yields rallying since the beginning of 2009 it looks as if its only going to get worse for FHA loan rates and mortgage rates as a whole.
The one saving grace about the current mortgage rate situation is that there are still mortgage lenders advertising mortgage rates under 5%. While it is not a given that you will have access to these rates, you will never know until you try. Most of the ads lead to an 800 number in which you can speak to a representative. You might not want to tell that representative everything about your life and financial situation but it might be smart to at least give them a call and see what type of interest rates are floating around at the current time.
If you have been waiting for mortgage rates to drop now is not the time to continue the wait. If you want to refinance or buy a new home, it would be wise to go ahead and get that mortgage application in well before mortgage rates make their way to 6%. Once they are at 6% you never know how high they could go!
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