Refinance Mortgage Rates Drop to 5% – Low Interest Rates in September
Posted on | September 9, 2009 | No Comments
Refinance mortgage rates have been around 5% for the last two weeks and we are seeing very low interest rates in September. We have seen mortgage interest rates go from 4.95% to 5.1% and every where in between since the beginning of September. The Federal Reserve Bank has worked very hard to keep interest rates low and it looks to be working. The Freddie Mac weekly mortgage survey has yet to report average mortgage rates under 5% but it is likely going to come sometime in the next few weeks.
The puchases of mortgage backed securities and US Treasuries by the Federal Reserve Bank has greatly assisted in keeping mortgage interest rates near 5%. The highest that we have seen mortgage rates this year is around 5.6% and we hit a low of 4.78% back in April. With mortgage rates remaining this low, it would be smart for any home owner to consider the refinance process in the very near future.
Going through the refinance process should be much easier now than back in March. In March the Making Home Affordable Plan was just getting started and mortgage lenders were being more strict with their lending practices. Now that the Making Home Affordable Plan is several months old and lenders have loosened up their grip on money it should be a little bit easier to get a refinance done.
There are already many lenders out there that are advertising mortgage rates under 5%. While you might not be able to get a rate this low you will never truly know until you actually sit down and go through the entire refinance application. By just calling and asking around you are never going to get a 100% accurate mortgage rate quote. The refinance application may take a little bit more time and effort but it will be worth it in the long run if you are saving hundreds of dollars on your monthly mortgage payment.
Do not let this time to refinance pass you by. If you wait and hope to time the market at the very bottom you risk the chance that mortgage rates could go back up and you will find refinancing will not even be worth it. As of now, most Americans who have been thinking about refinancing would greatly benefit as few people actually have a mortgage rate as low as they are now.
Author: Mike Garner
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