Home Mortgage Refinance Loan Rates – Interest Rate Predictions, Forecasts and Trends Changing in Mid December 2010
Posted on | December 13, 2010 | No Comments
Home mortgage refinance loan rates have moved up quickly over the last five weeks as we have seen 30 year fixed mortgage rates move from 4.0% to 4.75%. With this being the case interest rate predictions, forecasts and trends have greatly changed in the middle of December 2010. It comes as no surprise to see many analysts predicting higher rates in the future.
Since the beginning of November we have seen the 10 year treasury rate yields rise from 2.5% all the way up to 3.2%. With this being the case it should come as very little surprise to see 30 year fixed mortgage rates moving up quickly. The 10 year treasury rate yield and 30 year fixed mortgage rate have had a very strong correlation since 1971.
As we get deeper into 2011 there is a very good chance that mortgage rates could move up very quickly. If the federal reserve bank thinks that the overall economy is improving and there is a very strong possibility that we could see 30 year fixed mortgage rates as high as 6% during the summer of 2011. While no one knows if this will happen it is a possibility.
The Federal Reserve Bank Chairman has stated many times that the overall economy will dictate interest rates. If the economy shows great improvement than the Federal Reserve will likely take their hand out of the pot and let the market set interest rates. Over the last two years the Federal Reserve has done everything possible to keep interest rates low but this may be coming to a conclusion as we enter 2011.
With this being true it might be unwise decision to take advantage of a refinance mortgage interest rates while possible. The general of some is that homeowners should save at least one full percentage point to benefit from the refinance process. Without saving this one full percentage point it is generally the case that homeowners end up paying more in closing costs than they will save with a lower rate.
Author: Jeremy North
Tags: home loan interest rates > home mortgage refinance rates > Interest Rate Predictions > interest rate trends > interest rates forecast > Refinance Home Loan Rates
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