Locking In Low Mortgage Rates Before 2010 – Smart Move?

Posted on | December 16, 2009 | No Comments

Many homeowners are currently contimplating the thought of locking in a low mortgage rate before 2010.  At this point mortgage rates are likely to stay close to 5% but that could all change quick at the beginning of 2010.  Ben Bernanke and the Federal Reserve Bank is going to stop buying mortgage backed securities by March 31st, 2010 which is sure to greatly affect mortgage interest rates.  At the present time the 30 year fixed mortgage rate is around 4.75% but that could greatly change in the next few months.


When the Fed stops buying mortgage backed securities many analysts are predicting that we are going to see a move higher in mortgage rates to the tune of .5% to 1%.  If this is truly the case then we could see the 30 year fixed mortgage rate pushing 6% by next spring or summer.  If you have the opportunity to lock in to a low mortgage interest rate today you might want to take action before it is too late.

The 10 year treasury rate yield has moved much higher since the beginning of December; from 3.2% to 3.6%.  If this move higher continues throughout the month then there is a good chance that this move higher in mortgage rates could start sooner rather than later.  Do not let these low interest rates pass you by; you could be missing out on the opportunity of a lifetime.

Author: Jesse Wojdylo

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