Refinance Home Loan Rates – Late March Mortgage Interest Rates Up
Posted on | March 25, 2010 | No Comments
Refinance home loan rates have been below 5% for almost the entire year of 2010 but that is likely to change in late March. There are many signs pointing towards have mortgage interest rates as we conclude the third month of the year. The Federal Reserve Bank is going to stop purchasing mortgage backed securities and the 10 year treasury rate yield is uptrending.
The conclusion of the mortgage backed securities purchase program is likely going to push mortgage rates higher by .5% to 1% on the 30 year fixed rate mortgage. Over the last year we have seen interest rates held lower by this purchase program but beginning in April the Fed will no long buy these securities.
Over the last few weeks we have seen the 10 year treasury rate yield grind sideways to down. Today we saw the 10 year yield break through its 50 day moving average and move much higher. There is a good possibility that the 10 year yield could move all the way up to 4% which could push mortgage rates to 5.5%.
If you are looking to refinance or lock in to a low mortgage interest rate it would be wise to take action sooner rather than later. If you continue to wait you could be looking at mortgage rates closer to 6% than 5%. This is a scary thought but it may be reality before the summer gets here.
Author: Mike Garner
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