Refinance Home Loan Rates – 15 Year Fixed Rates Drop?
Posted on | August 31, 2009 | No Comments
Refinance home loan rates were stuck in a tight range much of last week. The 15 year fixed mortgage rate has dropped from 4.6% to 4.44% in a week so that is good news for borrowers who are looking for a shorter home loan. At the beginning of August the 15 year fixed got all the way up to 4.8% and has since worked its way all the way back down. Anything close to the 4.25% level is an amazing home loan rate that everyone should hope to attain.
Now that 15 year fixed rates have dropped for much of August, what is next for refinance home loan rates. Well, at the current time, it is very hard to predict mortgage interest rate because the government has played such a vital role in keeping interest rates low. With that being said, it looks as if home loan rates are going to continue south because the 10 year treasury rate yield is no longer in its steady uptrend.
The 10 year treasury rate yield has been the main reason that the 30 year fixed mortgage rate has stayed above 5% and the 15 year fixed mortgage rate has stayed above 4.25%. If the 10 year yield was not in a steady uptrend for much of 2009, it is likely that we would be sitting at historical lows for almost all types of mortgage rates. The 10 year yield has recently broken its up trend and is heading sideways to down; this means that mortgage rates could move down as well.
In the coming months, the Federal Reserve Bank is going to stop buy US Treasuries which will make things very interesting. If the Fed totally stops buying Treasuries, we are likely going to see a bull market in treasury yields. If this is the case, mortgage rates are sure to head higher as the 10 year yield works its way back to 4%. This is exactly what President Obama does not want so we can all assume that this is not likely to happen. He has worked too hard to get the economy back in shape to let high mortgage rates tear it back down.
Overall, now is one of the best times in history to refinance your home loan. Mortgage interest rates are at historic lows and mortgage lenders are working very hard to get your business. With over 350 mortgage lenders closing their doors, the ones that are still open will bend the rules a little bit to get you as a first time customer so please use your negotiating skills and get the lowest mortgage rate you can!
Author: Tiffany Mann
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