Home Mortgage Loan Rates – Trends Pointing to Lowest Rates Ahead?
Posted on | February 26, 2010 | No Comments
Home mortgage loan rates are at extremely low levels but there is a possibility that the trends are pointing to the lowest interest rates ahead. Over the last several months we have seen mortgage rates between 4.7% and 5%. Even though the 10 year treasury rate yield has moved higher we have seen mortgage rates stay extremely low.
Even though many analysts have predicted that mortgage rates are going to move up in the spring of 2010 there has been very little indication that mortgage rates will break 5%. If you have been considering locking into a low home mortgage loan rate now might be the time to take action.
Even if trends are pointing to lower mortgage rates ahead there’s still a possibility that rates could move up. The 10 year treasury rate yield has been moving sideways to higher for almost a year now and it is usually the case that the 30 year fixed mortgage rate follows the 10 year treasury rate yield.
Eventually we are going to see the government stop their purchases of mortgage-backed securities which will likely push mortgage rates higher at least .5%. You do not want to wait until this happens so it might be a wise decision to lock into a low mortgage rate today.
Author: Jeremy North
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