Refinance Home Loan Rates – Mortgage Rates Fall Below 5%?
Posted on | August 19, 2009 | 2 Comments
Refinance home loan rates are something that is on the mind of most home owners. With mortgage rates around 5% many home owners are hoping to see a fall below the psychological level of 5% so they can start the refinance process. For some reason, the 5% level just cannot be broken to the downside. Every single time average mortgage rates get close to this level we see the 10 year treasury rate yield start to up trend and mortgage rates start working their way back up towards 5.5%.
It would be great if the government offered a little bit of commentary on how interest rates are likely to head lower. That may be just what this market needs to finally fall below the 5% level. Unfortunately the Federal Reserve Bank usually waits until mortgage rates are around 5.5% before they make an announcement like this. Also, if we can get a break down of the 10 year treasury rate yield, we will likely see the 30 year fixed mortgage rate fall below 5%.
The 10 year treasury rate yield has been up trending since the beginning of 2009 but that is very likely to chance soon. By looking at the chart of the 10 year yield, you can see that we are very close to breaking below the bottom support line. If we can break this up trending channel, the 10 year yield could fall all the way to 3% which would help mortgage rates to plummet below 5%.
If we do see overall interest rates get this low, we are likely to see the refi boom that everyone was calling for back in January. For some reason 5% is a barrier that many home owners want to get under. As soon as mortgage rates fall below this point, expect to hear that mortgage applications have gone through the roof. I would imagine that there are many families with mortgage applications ready to go who are just waiting for mortgage rates to fall below the 5% level. It will be a very fun time to witness the mortgage market if this does happen.
There are already mortgage lenders out there who are advertising average mortgage rates below 5%. While you might think that you do not have access to these rates, you will never know until you actually call them and see what happens. Most of the ads allow you to speak to an operator so why not at least give them a call and see what they can offer you? The worst case scenario is that you have to hang up the phone.
Author: Tiffany Mann
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November 25th, 2009 @ 5:23 am
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December 30th, 2009 @ 7:56 pm
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