30 Year Fixed Mortgage Rates – Interest Rates Set to Move Up in Late March
Posted on | March 25, 2010 | No Comments
The average for 30 year fixed mortgage rates is still below 5% but there is a very good chance that that will not last much longer. The Federal Reserve Bank is going to stop purchasing mortgage backed securities and the 10 year treasury rate yield looks to be in a strong up trend as it broke through its 50 day moving average.
Analysts have predicted that the conclusion of the mortgage backed securities purchase program could push mortgage rates up by one full percentage point. At the present time we are seeing 30 year fixed mortgage rates around 4.85%. A one percent move higher and we would be getting very close to 6%.
There has been a strong correlation between the 10 year treasury rate yield and the 30 year fixed mortgage rate for quite some time. In 2010 that correlation is likely to get even stronger as the conclusion of the Fed purchase program should make the 10 year treasury rate yield effect the 30 year fixed mortgage rate even more.
The 10 year yield is currently in an up trend which is a bad sign for those looking for lower mortgage interest rates. If the 10 year yield pushes above 4% then there is a very good chance we could see mortgage rates up to at least 5.5% in the very near future. April will be a very interesting month.
Author: Mike Garner
Comments
Leave a Reply