Refinance Home Loan Rates – Getting the Low Mortgage Rate You Desire
Posted on | November 13, 2009 | No Comments
Refinance home loan rates are very close to all-time lows. We have recently seen a 30 year fixed mortgage rate as low as 4.69%. The all-time low for the 30 year fixed mortgage rate is approximately 4.61%. That level of 4.61% is the average for a week so even if we do dip below that level for one day that will not mean that we are at all-time low levels.
If you have been thinking about refinancing your current home loan it might be a good idea to at least do some research. Many mortgage lenders are advertising mortgage rates well under 5%. Obviously the equity in your home and your credit score will greatly determine what your mortgage rate is but with rates this low there’s a good chance that you will save by refinancing.
There is a very good chance that mortgage rates are not going to stay this low for an extended period of time. The Federal Reserve Bank is stated that they’re going to stop buying US treasuries. The conclusion of U.S. Treasury purchases was done on October 31, 2009. The month of November is the first full month that the Fed will not buy U.S. Treasuries.
With the Fed not purchasing US treasuries there is a good chance that we will see an increase in treasury yields. If treasury yields increase there is a very good chance that mortgage interest rates will follow suit. It has been the case in 2009 in mortgage rates have lagged when it comes to following treasury yields. Back in May treasury yields increased for quite a long period of time but mortgage rates do not react for several weeks.
If you are going to wait and hope that mortgage rates at all-time lows you may be taking a big risk. With mortgage rates well below 5% there is no reason that you should not get out there and try to refinance your current home loan now. With mortgage lenders more than happy to help you out now is the time to get that low mortgage rate that you desire.
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Author: Heather Best
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