Refinance Home Loan Rates – Is Now the Time to Refinance?
Posted on | August 27, 2009 | No Comments
Refinance home loan rates are getting very close to the 5% mark that everyone wants to see broken. Many current and future home owners are hoping that this psychological level is broken so we can get down to historically low levels. In March we hit low levels of 4.75% for mortgage rates and we have not seen them since. Many of you probably remember these low rates and likely have a friend or family member who locked in at the historically low interest rates.
Here we are today, at the end of August, and mortgage rates are once again knocking on the door of 5%. We have done this several times over the last few months but cannot seem to break through this floor. The Federal Reserve Bank has tried everything in their power to keep interest rates low but they just cannot get through the psychological barrier of 5%. If we see a Fed Speech or a break down in the 10 year treasury rate yield, we might have the opportunity to see rates below this level.
It is hard to count on this though as the last three times refinance home loan rates got this low we saw a bounce in the 10 year yield and mortgage rates moved back up towards 5.5%. The only difference is that was when the 10 year yield was in a steady up trend and that looks to have changed. The yield is now well below the 50 day moving average and that average is actually sloping down. This might be a sign that mortgage rates could break to new lows.
If new lows are set, there will be a swarm of refinance applications submitted and you do not want to be in this mess; you want to be a little bit before it. If you wait until average mortgage rates are below 5% then you could get stuck in a sticky situation because you might get backlogged with some of the lenders. You can imagine how many applications they will see in a short period of time if we see mortgage interest rates as low as 4.75%.
There are many mortgage lenders advertising mortgage rates under 5%. It might be a good idea to go ahead and get started on your mortgage application so you avoid the congestion that is likely to happen if we do break the 5% floor. If you wait too long, you might get stuck in the back of the line and that never feels good. It is not hard to find a good mortgage lender, there are ads all over the place; just make sure to check them out!
Author: Alan Lake
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