Home Mortgage Loan Rates – April 2010 Could See Higher Interest Rates
Posted on | March 29, 2010 | No Comments
Home mortgage loan rates have been very low for the entire year of 2010 but we could be seeing a reversal in April. There’s a very good chance that in April we will start to see mortgage interest rates moving higher and they could possibly move all the way up to 6%.
At the end of March the Federal Reserve Bank is going to stop purchasing mortgage-backed securities which is likely to affect mortgage rates. Some analysts have predicted that mortgage rates are going to move up one full percentage point when this program has been concluded.
It is also the case that the 10 year treasury rate yield is uptrending. Last week we saw the 10 year yield break through its 50 day moving average and move much higher. With the 10 year yield moving higher you can expect 30 year mortgage rates to move higher as well.
Home mortgage loan rates are around 5% for the 30 year fixed-rate at the present time but that could be changing very soon. If you continue to wait and hope mortgage rates are going to drop you could be looking at rates closer to 6% than 5%.
Author: Jeremy North
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