Refinance Home Loan Rates – All Time Low Mortgage Rates in Sight
Posted on | November 18, 2009 | No Comments
Refinance home loan rates are getting very close to all time lows. The all time low for 30 year fixed mortgage rates is 4.61%. This all time low is a weekly average so a daily dip below this number does not mean that we set an all time low. Currently we are seeing the 30 year fixed mortgage rate around 4.65%.
Another few days of drops and we could get very close to a week near all time lows. There is a very good chance that mortgage interest rates will dip below this level on a daily basis soon but it might not be sustainable. One thing that has helped to push mortgage rates lower is the fact that the 10 year treasury rate yield have broken below its 50 day moving average.
If the 10 year yield continues to decline it will not be surprising to see mortgage interest rates start to free fall. The Federal Reserve Bank has worked extremely hard to make sure that interest rates stay low and this has obviously been working. The purchases of mortgage backed securities has done an amazing job of pushing rates much lower.
The Fed is going to eventually have to take their hand out of the pot when it comes to interest rates but that does not look like it is going to happen until at least March 2010. For several more months the Fed is going to continue to purchase mortgage backed securities which will keep mortgage rates at modest levels.
The troubling thought at the current moment is what will happen to mortgage rates when the market actually sets rates. There is a very strong possibility that we will see a sling shot effect when it comes to rates. WIth the Fed holding them down for so long we could see rates shoot up drastically after March 2010.
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: Mike Garner
Comments
Leave a Reply