Refinance Home Loan Rates – Mortgage Interest Rates Under 4.75%
Posted on | November 16, 2009 | 1 Comment
Refinance home loan rates are getting very close to an all-time low. The all-time low for mortgage interest rates is 4.61%. We saw a 30 year fixed mortgage rate of 4.61% back in March. Please know that this low is for a weekly average not just a single day. Recently we have seen mortgage rates as low as 4.63% on a daily basis.
This week will be very interesting when it comes to mortgage interest rates. The 10 year treasury yield has continued to increase since the beginning of October but mortgage interest rates have yet to follow. This is very unusual as the 10 year treasury yield and mortgage interest rates tend to have a strong correlation.
If the 10 year yield goes up, especially as much as it has since the beginning of October, mortgage interest rate usually follow the yield higher. This has yet to be the case in November. Mortgage interest rates have moved sideways to down for much of the month and we are very close to seeing all-time lows. What this shows us is that the government is working very hard to keep mortgage interest rates low.
The 10 year yield is now above its 50 day moving average and the 50 day moving average is starting to uptrend. If the 10 year yield continues this uptrend for the remainder of the month of November it would be hard to believe that mortgage interest rates would not at least move up a little bit. Even though the Fed is still buying mortgage-backed securities there is still reason to believe mortgage interest rates will move higher.
It is very interesting to see the push and pull of mortgage-backed securities being bought and treasury yields moving higher. It looks as if the purchases of mortgage-backed securities is a stronger influence on mortgage rates at the current moment. Eventually we are going to see the markets set interest rates and when this happens it is likely that interest rates will move much higher.
Please make sure to return to Subprime Blogger for all your mortgage and financial news. To stay up to date on the current state of finances make sure to bookmark the current news category below.
Author: Tiffany Mann
Comments
One Response to “Refinance Home Loan Rates – Mortgage Interest Rates Under 4.75%”
Leave a Reply
November 16th, 2009 @ 10:15 am
There has never been a better time to buy or refinance. Companies like PrimeSource Mortgage, and its parent company, PSM Holdings (OTC: PSMH) have both weathered the storm and are in a great position to capitalize on today’s environment for one simple reason…they saw it coming.