Mortgage Refinance Rates – Lock In at Interest Rates Under 5%
Posted on | October 14, 2009 | 2 Comments
Mortgage refinance rates reman under 5% but this might not last much longer. If you have been thinking about refinancing now might be the time to lock in at a mortgage interest rate that is under 5%. For much of the last month we have seen mortgage rates under the psychological level of 5% but that was with a down trending 10 year treasury rate yield.
The 10 year yield looks to have hit support at its 200 day moving average and has now moved up significantly. The first level of resistance for the 10 year yield is its 50 day moving average and that was tested today. Until there is a strong move through the 50 day moving average we believe that the up trend in the 10 year yield is not going to move mortgage rates significantly higher.
With the current up trend we do expect to see mortgage rates move above 5%. The longer the 10 year yield remains in an up trend the more likely it is going to be that mortgage rates break through the 5% barrier. This is not good news for those of you who have waited to refinance. If you were planning on getting a mortgage interest rate at all time lows that might be out of the question now.
The Federal Reserve Bank is going to stop their treasury purchase program by the end of the month which is likely to push treasury yields even higher. The current up trend is likely due to this fact so it might already be baked into the 10 year yield when that time does come. Even if that is the case there is still a strong possibility that there will be a long term up trend in yields at that point.
Several mortgage lenders are still advertising refinance mortgage rates under 5% so it would be a good idea to contact these companies and start the mortgage application process. If you wait several weeks to start this process you might find that mortgage rates are much closer to 6% than they are to 5%; do not let this great opportunity pass you by.
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Author: Mike Garner
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October 14th, 2009 @ 7:03 pm
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