Refinance Home Loan Rates – 2010 Mortgage Rate Lows in the Past?
Posted on | February 1, 2010 | No Comments
Refinance home loan rates were between 4.8% and 5% for the entire month of January. During the last week of the month we saw a very brief period in which mortgage rates were at 4.79%. We called this the 2010 low and it could be the lowest level that we see in the entire year. Unfortunately, the 2010 mortgage rate lows could be a thing of the past.
Many analysts have predicted that mortgage interest rates are likely to rise beginning in the spring of 2010. Some analysts predict that rates will go up as much as 3% which would put the 30 year fixed mortgage rate around 8%. This might be an extreme estimate but when the Fed takes their hand out of the pot mortgage rates could move up drastically.
At the end of March 2010 the Federal Reserve Bank is going to stop buying mortgage-backed securities. This is likely to push mortgage rates up at least .5% to 1% but it could be much more. When the market has the ability to set interest rates there is a very good chance that we could see rates move up quickly.
If this is the case then you will want to make sure that you have your mortgage application ready to go before rates start moving higher. At the present time the 30 year fixed rate is still around 4.85% but it could move up quickly this week. You do not want to miss out on an opportunity to lock into a lower mortgage interest rate.
Author: Alan Lake
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