Today’s Lowest Mortgage Interest Rates – Federal Reserve Bank Decision Could Increase Volatility in Home Loans in May
Posted on | April 27, 2011 | Comments Off
On April 27th, 2011 the Federal Reserve Bank will make a decision on quantitative easing which in turn could greatly affect the volatility of overall home loan interest rates. With this in mind many American homeowners are looking for today’s lowest mortgage interest rates to lock-in before rates start to move quickly if the Fed takes her hand out of the pot.
For well over three years the federal reserve bank is taking every necessary step to keep interest rates low which in turn has helped many Americans refinance to historic lows. With there being a possibility of no quantitative easing three program there is a chance that we could see the 10 year treasury rate yield rise quickly which in turn will push 30 year fixed mortgage rates higher.
Since 1971 the 10 year treasury rate yield and 30 year fixed mortgage at had a very strong correlation and that is not likely to change in 2011. With this in mind it is always a wise choice to watch the 10 year yield before making any final decisions when it comes to purchasing a home or going through the refinance process.
At the present time we are seeing the 10 year treasury rate yield well below its 50 day moving average which in turn has helped to push 30 year fixed mortgage rates all the way down to 4.6%. Even though this is the case they are still many analysts that feel an improved economy and a lower unemployment rate will likely push interest rates higher heading into the summer of 2011.
With over 7000 FDIC insured banks throughout the country it should not be difficult to find a home loan lender that is willing to offer great customer service to go along with low interest rate offers. As stated earlier, on April 27 of February to major decision to it may be advisable to start research before this process as this is likely to increase the volatility and overall rates.
Author: Heather Best
Tags: april mortgage interest rates > bank rates april > federal mortgage interest rates > federal reserve bank rates > lowest homa loan rates > lowest mortgage interest rates > today's lowest mortgage rates