Obama Refinance Plan – Lowest Mortgage Rates Coming in November?
Posted on | October 28, 2009 | No Comments
The Obama refinance plan was created to help home owners refinance to lower mortgage rates so they could make their monthly mortgage payments much easier. If you refinance to a lower rate then it stands to reason that you would, in turn, have a lower monthly mortgage payment. The question that many home owners currently have is “are the lowest mortgage rates coming in November?”
Mortgage interest rates have been at or below 5% for all of September and October. At the end of October we have seen mortgage rates move sideways to slightly higher so this might not be a good sign for the future of mortgage rates. Another issue at hand is the fact that the 10 year treasury rate yield is currently up trending in a fashion it did this summer.
If you followed the mortgage market this summer you remember that mortgage rates actually made their high of the year. When the 10 year treasury rate yield hit the summer high of 4% we saw mortgage interest rates hit 5.59%. If the 10 year yield continues to move in the direction it has in the last few weeks then there is a good chance that the 4% level will be tested.
If this is the case you can be rest assured that the lowest mortgage interest rates are not coming in November. At the beginning of November we might continue to see mortgage rates under 5% but there is a very good chance that we will not see rates this low again for quite some time. With the rise of the 10 year yield we will see the rise of mortgage rates.
Now is one of the best times in recent history to refinance. If you wait a few months or even a few weeks you might find that mortgage rates have moved up very quickly. The government is doing everything they can to keep mortgage interest rates low but eventually the markets are going to set interest rates. When this happens we are likely to see mortgage rates closer to 6% than 5%.
Please make sure to return to Subprime Blogger for all your mortgage and financial news. To stay up to date on the current state of finances make sure to bookmark the current news category below.
Author: Alan Lake
Comments
Leave a Reply