30 Year Fixed Mortgage Rates Much Higher in Late March – Rates Above 5%
Posted on | March 26, 2010 | No Comments
At the present time we are seeing 30 year fixed mortgage rates much higher. In late March the 10 year treasury rate yield has accelerated higher which has pushed mortgage rates above 5% for the first time in quite some time. It would not be surprising to see 30 year rates around 5.5% very soon.
Many analysts and CEOs have predicted higher mortgage rates for quite some time. It seems as if the rates are now poised to move much higher in late March and early April. This comes as no surprise as the Fed will stop purchasing mortgage backed securities at the end of this month.
The conclusion of the mortgage backed securities purchase program along with higher 10 year yields is a strong indicator that we are going to see much higher mortgage interest rates in the next few months. Some analysts have predicted that mortgage rates could go as high as 7.5% in 2010.
While this may be a stretch when it comes to a mortgage rate prediction anything is possible. If the Fed is no longer purchasing mortgage backed securities there is little that can be done to hold mortgage rates lower over the next few months. It will be very interesting to see how interest rates react in the coming weeks and months.
Author: Mike Garner
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