Home Mortgage Loan Rates – Interest Rates Drop Further?
Posted on | August 22, 2009 | 1 Comment
Home mortgage loan rates have been all over the place for most of August. Interest rates started the month extremely low, near 5.05% and then we saw a strong push up in the 10 year treasury rate yield. This push higher resulted in mortgage rates moving all the way up to 5.5% in less than a week. As soon as that happened the Federal Reserve Bank announced that they were going to do everything in their power to keep interest rates low.
This commentary by the Fed pushed mortgage rates much lower; all the way back down to 5.1%. This is relatively close to where we sit today as mortgage rates have been hovering around 5.1% for the last week or two. It is going to take a slight break down of the 10 year treasury rate yield to finally push mortgage rates under 5%. When this happens, it will be interesting to see if we see that swarm of mortgage applications everyone expects.
The bad thing about this swarm of applications would be the fact that it would be very difficult to actually get your application though. The last time mortgage rates dropped below 5% there was a huge interest in refinancing and it created a huge backlog for several mortgage lenders. This is exactly what you do not want to have to go through if you want to refinance at a low mortgage rate.
Several home owners have already started the mortgage application process and are ready to complete it whenever they think mortgage rates have hit a low. No one can truly predict the low of mortgage rates, but anything under 5% would be a great rate in the current economic environment. Three years ago, most people would never believe you if you told them that you got a home mortgage loan rate under 5%. It was almost non-existent.
Home mortgage loan rates are at historically low levels so it would be a good idea to take advantage of these times. If you have been thinking about refinancing, it might be a good idea to go ahead and get your mortgage application ready so you will be ahead of the game if mortgage interest rate do in fact drop below 5%. You would not want to miss out on this opportunity as it might not happen again.
Author: Tiffany Mann
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August 23rd, 2009 @ 7:13 am
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