Refinance Interest Rates – Moving Higher?
Refinance interest rates are moving higher next week. The 30 year mortgage interest rate is sure to go up as the 10 year treasury yield rate has pushed much higher this week. The treasury yield was up almost 10% which means average mortgage rates could move MUCH higher next week. It will be very interesting to see what happens, but it would not be surprising to see mortgage rates around 5.5% by the middle of next week. If you have been considering a refinance, now might be the time to get that application in.
Many home owners have been seeking a refinance rate under 5% but that seems highly unlikely now that the 10 year treasury rate yield has remained in its uptrend. Since January, the 10 year yield has been pushing higher. At one point, the yield moved from 2% all the way to 4% before pulling back. The yield now sits around 3.63%. If an assault on 4% continues, we could see average mortgage rates push their way to 6%. This would be very bad news for current home owners attempting to refinance.
Maybe a push higher in mortgage rates is what the overall housing market needs to flush out the bottom. When mortgage rates rise, one thing is for certain, we are going to see home prices fall even more. Home buyers are willing to pay less for homes because they have to pay so much more in interest on their mortgage payments. Overall, look for refinance interest rates to move up next week.
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2 Comments on Refinance Interest Rates – Moving Higher?
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Refinance Interest Rates Pushing Mortgage Rates Higher - Economic Conversation on
Sun, 19th Jul 2009 9:35 pm
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Fixed Year Mortgage Rates Moving Higher Next Week? - Economic Conversation on
Fri, 24th Jul 2009 10:07 am
[...] you were considering refinancing at rates lower than 5.5% then you better get your mortgage application in very quickly. If the [...]
[...] you have been waiting for 5% or lower mortgage rates, it is advisable to get your mortgage application in now and lock in at a rate lower than 5.5% [...]
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