Wells Fargo Mortgage Rates – Interest Rates Drop to 5.1%
Posted on | August 18, 2009 | No Comments
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Wells Fargo mortgage rates have went for quite the ride over the last several weeks. Interest rates have been all over the map during the month of August after an extremely uneventful July. At the end of July we saw a huge sell off in the 10 year treasury rate yield which pushed mortgage rates all the way down to 5.05%. Many financial analysts were predicting that we were going to drop below 5% for the first time since early April.
While many people believe that we would break the 5% mark, the markets thought otherwise. The first week of August showed an extreme move higher in the 10 year yield; a push up of over 10% in one week. This actually sent average mortgage rates soaring to 5.5%. The tight range of July between 5.1% and 5.3% have been broken to the downside one week and to the upside the very next week. The volatility in daily mortgage rates did no stop there.
After mortgage rates hit 5.5% the Federal Reserve Bank made an announcement that they were going to hold overnight interest rates at basically zero. This sent average mortgage rates much lower. By the end of the second week in August we were all the way back down to 5.1% for the 30 year fixed mortgage rate. With this much volatility can anyone accurately predict where mortgage rates are going?
It seems every single time that daily mortgage rates get near 5.5% the Federal Reserve Bank announces a new plan to keep interest rates lower. Any time mortgage rates get into the range of 5% the 10 year treasury rate yield starts to uptrend which brings mortgage rates along with it. It will be very interesting to see if this trend continues or if we break out of this range to the upside or downside. Eventually, something is going to have to give and we are going to either go much higher or much lower.
The one good thing about the current mortgage market is the fact that many mortgage lenders are still advertising mortgage rates under 5%. You may think that you cannot get a mortgage rate this low but you will never know until you actually get out there and take a chance. Most of the ads allow you to call a representative and talk to them so it is worth a shot to at least see what kind of deal you can work up!
Author: Mike Garner
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