Wells Fargo Refinance Mortgage Rates – Interest Rates Drop to 5.1%
Posted on | August 26, 2009 | No Comments
Wells Fargo refinance mortgage rates took a plunge to under 5.1% today. At least trade, average mortgage rates were around 5.08%. We are getting very close to the 5% psychological level that needs to be broken to see much lower mortgage interest rates. For over two months mortgage rates have seen the bottom of a trend channel around 5%. Every single time daily mortgage rates get to this level we see a strong bounce back in the 10 year treasury rate and this pushing mortgage rates towards 5.5%.
Knowing this, it is advisable to see low Wells Fargo refinance mortgage rates before it is too late. It is very possible that we will see average interest rates below 5% but there is also a good chance that 5% might be the bottom and we could start heading towards 6%. The Federal Reserve Bank has stated that they are going to stop buying US Treasuries by the end of September so this could put the 10 year treasury rate yield in bull market mode. It this happens, we are definitely going to see higher average mortgage rates.
In a time of loans for bad credit, if you have a good credit score, you could get a great mortgage rate. The great borrowers are few and far between out there and if you are one of them, refinancing would be a great idea. It is highly likely that you can get a mortgage rate under 5% if you have a credit score that is well above average. The only thing that most borrowers are finding a challenge is actually having equity in their homes. If you have a great credit score and equity, you should definitely lock in at these refinance rates.
Overall, the mortgage market has went for quite the ride over the last few months. It seems that there are bounces between 5% and 5.5% each and every week. Making mortgage rate predictions has been very difficult but it has been that case that anything between these two levels has been happening on a consistent basis. After the Fed stops buying up US Treasuries it is likely we are going to see mortgage refinance rates work their way back towards 6%.
Locking in now would be a great way to go for most borrowers. You may want to wait and try to lock in at rates below 5% but the risk may not be worth the reward. In reality, there is not a great amount of different in 5.05% and 4.85%. Ultimately, the 5% mark is more of a psychological thing that many American home owners want to say they are below. The different in a monthly payment would only be a few dollars. You must decide if the risk of higher mortgage rates is worth it.
Author: Jesse Wojdylo
Comments
Leave a Reply