Refinance Home Loan Rates – Interest Rates Trend Towards 6%
Posted on | August 9, 2009 | No Comments
Refinance home loan rates are definitely trending towards 6%. Interest rates have historically followed the 10 year treasury rate yield and that continues to be the case. For much of 2009, the 10 year treasury rate has moved higher yet mortgage rates have trended sideways to down. This is quite unusual because over the 40 year history of mortgage rate data, there is a strong correlation between the treasury yield and mortgage rates. Well, it seems to be the case that mortgage rates move up greatly in a short period of time to catch up to the treasury yield.
This is exactly what happened back in late May when mortgage rates moved up almost .75% in one week. Well, this past week saw similar movements. On Monday, mortgage rates were around 5.05% and by Friday we saw mortgage rates at 5.45%. A .4% move in one week is quite significant. It will be very interesting to see if this type of movement continues next week. If the 10 year treasury rate yield continues to move higher it is likely that we will see mortgage rates near 6%.
If you have been thinking about refinancing or getting your first mortgage, it would be wise to contact some of the lenders that are still advertising mortgage rates under 5%. You will never know if you can get mortgage rates this low if you do not ask.
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