Current Mortgage Rate Trends – Interest Rates Trending Towards 6%
Posted on | August 7, 2009 | No Comments
Please use Subprime Blogger to get your mortgage rate trends; all trends articles are updated Monday, Wednesday and Friday. There are also several articles to help you get a home loan modification.
The current mortgage rate trends are definitely showing the interest rates are trending towards 6%. For the last month, mortgage rates have been in tight range between 5.1% and 5.3%. At the end of last week we saw treasury yields sell off and the 30 year fixed rate mortgage dropped down to 5.05%. Some financial analysts were actually calling for mortgage rates to drop below 5%. The exact opposite of that happened and mortgage rates started moving higher.
The 10 year treasury rate yield has rocketed up 10% this week which has pulled mortgage rates up with it. Mortgage rates have went from 5.05% all the way up to 5.45% in a matter of four days. This is the type of movement that generally happens when the 10 year yield is uptrending and mortgage rates do not follow. There are weeks in which mortgage rates move as much as .75% to catch up to the 10 year yield.
It will be very interest to see what happens next week as we can probably expect a pull back in both the 10 year yield and mortgage rates. That being said, who really knows what is going to happen. There are still lenders out there who are advertising mortgage rates under 5% so if you were thinking of refinancing or getting your first home, I would speed up the process as much as possible!
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