Today’s Lowest Mortgage Interest Rates – Home Loan Rates Up Going Into April
Posted on | March 25, 2010 | 1 Comment
Today’s lowest mortgage interest rates are around 4.85% for the 30 year fixed mortgage rate and 4.25% for the 15 year fixed mortgage rate. It seems as if home loan rates are going to start moving higher in the month of April. The Federal Reserve Bank will no longer be purchasing mortgage-backed securities and the 10 year treasury rate yield is uptrending.
Since 1971, the 10 year treasury rate yield and the 30 year fixed mortgage rate have had a very strong correlation. This correlation is likely to strengthen in 2010 with the Federal Reserve Bank concluding their mortgage-backed security purchase program. At the present time the 10 year yield looks as if it’s going to make a run at 4%.
Last summer, when the 10 year treasury rate yield hit 4% 30 year fixed mortgage rates moved all the way up to 5.6%. It would not be surprising to see this happen again in the spring of 2010. With this being the case it might be a wise decision to take action today if you are looking to lock in to a low mortgage interest rates.
There are many mortgage lenders that are continuing to offer low mortgage rates but this is likely to end very soon. If you are looking to refinance or buy a new home now would be the time to take action because if you continue to wait you could be looking at 6% mortgage rates.
Author: Jeremy North
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March 26th, 2010 @ 9:31 am
[...] rates. A mortgage blog reported yesterday that rates are likely to climb when the feds stop buying mortgage securities. In [...]