30 Year Fixed Rate Mortgage Lower This Summer?
The 30 year fixed rate mortgage has definitely worked its way lower this summer. At the very beginning of the summer, the 30 year fixed rate was around 5.6% but we are now seeing at around 5.2%. For those of you who watch mortgage rates on a daily basis, you know that the 30 year fixed rate mortgage has been for quite a ride over the last two to three months. A quick bump up in early June was followed by a slide all the way back down to 5.2%.
Will these lower rates continue throughout the summer? There are sure to be some bumps along the way, but it sure seems like the overall mortgage rate trend is down. The upper trendline was tested back in June but it looks like the downward trending motion will continue until something drastic changes. Every time I think that average mortgage rates are going to head higher, the government steps in and takes the appropriate actions to keep the 30 year fixed rate mortgage down.
From what I can see, it looks as if the Federal Reserve Bank wants to put a cap on mortgage rates around 5.5%. There is absolutely no way that mortgage rates should be below 5% but it looks like it is going to happen with the helpful of the federal government. This is great news for those of you who are going to be first time home buyers or for those who want to refinance their homes at extremely low mortgage rates.
We are truly living in unprecedented times when it comes to mortgage rates. Never have rates stayed this low for such a long period of time. If there is another push lower, the 30 year fixed rate mortgage will likely average being below 5% for the entire year of 2009. Prior to 2009, it was almost unheard of to get a mortgage rate this low. Now we are hearing almost every single day that one of our friends or family members got a sub 5% mortgage.
I strongly urge you to start doing your research now when it comes to refinancing. Even if you don’t have the extra cash and think you are going to wait to refinance, nothing is more valuable than knowledge. Make sure to check out Making Home Affordable and see if you can benefit from some of the governments plans to help America refinance. Overall, this is one of the best times in history to get a low mortgage rate, so go for it!
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4 Comments on 30 Year Fixed Rate Mortgage Lower This Summer?
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The Financial Suite » Interest Rate History Shows Low Mortgage Rates Ahead on
Tue, 14th Jul 2009 7:11 am
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Wed, 15th Jul 2009 7:39 am
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Wed, 15th Jul 2009 11:29 am
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Wed, 15th Jul 2009 11:29 am
[...] The worry about inflation is a topic for another discussion, what we see in the near future is lower mortgage rates. Eventually this long downward trend will be broken to the upside but it does not look as if it is going to happen anytime soon. Every time the market maven predict that mortgage rates are heading above 6%, the Fed jumps in and gobbles up trillions of dollars in debt to force the 10 year yield and 30 year fixed rate mortgages lower. [...]
[...] and we have put a bottom in overall mortgage rates. They basically feel that we are going to see mortgage rates move sideways before heading [...]
[...] is very little doubt that now is a great time to be a first time home buyer. Mortgage rates are extremely low, home prices continue to fall and there is an $8000 first time home buyer tax [...]
[...] one thing that will help them compete is eing a “hometown” bank. When going to get a mortgage, future and current home owners want to be treated like people and not like numbers. This is an [...]
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