Refinance Home Loan Rates – Mortgage Rates Drop Below 5%
Posted on | September 22, 2009 | No Comments
Refinance home loan rates have been around 5% for the entire month of September. For the first time since May, mortgage interest rates have actually dropped below 5%. Last week we saw the 30 year fixed rate mortgage drop to 4.91% which is the lowest we have seen in quite some time. With that being said, it is very possible that we are going to see a swell in mortgage refinance applications.
If you have been thinking about refinancing your current home mortgage now might be as good of a time as ever. Mortgage lenders are actually lending money to home owners and mortgage interest rates are heading to new lows. Most home owners would dream of having a mortgage rate under 5% and now it is becoming very common for prime borrowers to get rates below this level.
If you have bad credit it is unlikely that you will get an extremely low mortgage rate but it is still a good time to refinance because you are likely to get a lower rate then you would at any other time. If you think your credit score is not going to greatly increase in the next few months then it would be wise to go through the home refinance process now rather than wait. If you wait, you might find that mortgage rates start moving back up which might defeat the purpose.
In October the Federal Reserve Bank is going to start easing their purchases of US Treasuries. This is likely to move treasury yields higher which will move mortgage rates higher. If you don’t lock in before the end of October there is a good chance that you are going to see higher mortgage rates and these rates might shoot up very quickly because the Fed has been holding them down for so long.
Refinance home loan rates are getting very close to all time lows. WIth another strong push lower we are going to see mortgage interest rates test levels almost unheard of. Make sure to take advantage of this opportunity and get your home loan refinanced before the Federal Reserve Bank stops their purchases of US treasuries.
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Author: Tiffany Mann
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