Wells Fargo Refinance Mortgage Rates – How High Will Interest Rates Go?
Posted on | December 31, 2009 | No Comments
Wells Fargo refinance mortgage rates have been all over the map in the last month. This has caused many people to wonder how high will interest rates go? Unfortunately, it is impossible to answer this question with 100% confidence. Morgan Stanley economists feel that mortgage interest rates are likely to go to 8% in 2010 while Goldman Sachs economists feel that interest rates will stay close to the same.
At the present time the Federal Reserve Bank is buying mortgage-backed securities which is helping keep mortgage interest rates low. At the end of March 2010 the Fed plans to stop buying mortgage-backed securities which is likely to push mortgage rates up. Several analysts have predicted that mortgage rates will move up at least .5% to 1% when the Fed stops buying mortgage-backed securities.
There is a strong possibility that the Fed could extend this program if they see the economy not recovering as well as they predict. They have extended this program in the past and it would not be surprising if they do it again to help stabilize home prices. There is little argument that low interest rates have been a very strong reason that home prices have stabilized in the recent months.
Wells Fargo has positioned itself very well for the current low interest rate environment. By simply doing searches on the Internet you are likely to find many different options when it comes to Wells Fargo mortgage rates. This means that they have worked very hard to get your eyes to their website which in turn means that they want your business.
If you’re looking to refinance at a low interest rate in 2010 you might want to consider getting your mortgage application in sooner rather than later. If you continue to wait until after March 2010 there is a possibility that mortgage rates will have moved up at least one full percentage point. This might offset the savings that you would have seen if you refinanced at low rates.
Author: Alan Lake
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