Home Mortgage Refinance at Low Interest Rates
Getting a home mortgage refinance at low interest rates is something that almost every home owner is looking to do today. If they are not looking to do this, it is likely that they have done it in the recent past and got a mortgage rates close to or under 5%. With average mortgage rates falling every week, now might be one of the best times in recent history to attempt to refinance at low mortgage rates.
For the last three weeks average mortgage rates have fallen. It seemed like just the other day that CNBC was reporting that interest rates were headed much higher. Well, that was short lived as the Federal Reserve Bank has stepped up their purchases of United States debt which has sent mortgage rates lower. It seems any time that daily mortgage rates start to tick up, the Fed steps in and does whatever it takes to push them right back down.
Now that the 10 year treasury rate yield is well under the support of the 50 day moving average, it looks like low mortgage rates are here to stay. If the 50 day moving average was once support, it is now going to serve as resistence when the 10 year yield actually moves higher. It is likely we will see a short lived rally in the rate yield to get back to the 50 day moving average, but it is likely to pull all the way back down to the next support level of the 200 day moving average.
If the 10 year yield does pull all the way back to the 200 day moving average, where will mortgage rates be? Well, if this does in fact happen, look for mortgage rates to work there way well under 5% and possibly back to the levels we saw in March. The 30 year fixed rate mortgage bottomed at around 4.78% in March but many homeowners got to refinance at rates even lower than that. If the 10 year yield continues its slide, you may get this opportunity as well.
No one really knows where rates will bottom out at, but it sure seems the government is going to do everything in their power to cap interest rates. If mortgage rates get anywhere near 5.5% the Federal Reserve prints BILLIONS of dollars to buy up government debt which forces rates even lower. Even though this might not be the best fiscal move for the future, it sure is going to help you refinance at a much lower rate!
Comments
3 Comments on Home Mortgage Refinance at Low Interest Rates
-
Lowest Mortgage Rates Have Yet to Come? - Economic Conversation on
Mon, 13th Jul 2009 11:29 am
-
The Financial Suite » Mortgage Rates Forecast Shows Lower Interest Rates Ahead on
Tue, 14th Jul 2009 7:10 am
-
Mortgage Loans for Bad Credit - What Can You Get? - Economic Conversation on
Thu, 16th Jul 2009 1:21 pm
[...] no one knows when the bottom is going to be, but if the Federal Reserve continues to buy US debt, interest rates are going to continue to fall. Some market analysts have predicted that we will see average mortgage rates as low as [...]
[...] Low interest rates are something that President Obama feels will help us out of this economic crisis. The Fed rate is basically at zero and Ben Bernanke is trying his best to keep mortgage rates at or below 5%. This is a very troubling time for the Obama administration because the actions that are taken in the next 6 to 12 months could help to move this economy forward or push us deeper into a recession. [...]
[...] of the most important things to do when getting a mortgage loan for bad credit is to make sure your credit score is as clean as you can get it. Even though you [...]
Tell me what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!