30 Year Fixed Mortgage Rates Moving Towards 6%?
Posted on | August 9, 2009 | No Comments
The 30 year fixed mortgage rate has went for quite the ride over the last week. At the beginning of last week, mortgage rates were around 5.05% as the treasury yields sold off on Friday. Many analysts were predicting that mortgage rates were going to break below 5% and we could see all time lows soon. Well, the exact opposite happened as treasury yields started a strong rally on Monday. From Monday to Friday mortgage rates moved from 5.05% to 5.45%. It was quite a move up that was not pretty and it could get worse.
For quite some time I have pointed out that the 10 year treasury rate yield has been in a strong up trend since the beginning of 2009. While the 10 year yield continues to push higher, mortgage rates have remain stable to down. There was no doubt that we were eventually going to see a week like last week. The most troubling part is that there is probably another week or two of the same action likely to come. If the 10 year treasury rate yield breaks 4% we are likely going to see the 30 year fixed mortgage rate move above 6%.
If you have been thinking about refinancing or getting your first mortgage, it is time to speed up the process. If you wait a few months or even a few weeks, you might be looking at mortgage rates in excess of 6%. This would make it almost pointless to refinance. There are still lenders who are advertising mortgage rates under 5% so it might be wise to contact them sooner rather than later.
Comments
Leave a Reply