Archive for July, 2009

Please get your mortgage rates forecast at Subprime Blogger.  Return every Monday, Wednesday and Friday as that is when the forecast is updated.

The current mortgage rates forecast has not changed at all over the course of this week.  This has been a week in which mortgage rates have moved from about 5.2% to about 5.25% and that’s it!  It is to be expected as this is the last week in July and there are many Americans who are on vacation.  Even the trading on the stock exchanges is way down due to the traveling season.  What makes current mortgage rates very interesting is the fact that the 10 year yield remains extremely high when compared to average mortgage rates.

Usually when this happens, there is a one week period in which mortgage rates push higher to catch up to the trading of the 10 year yield.  This has yet to happen and it is going to be very interesting to see when it does.  I would imagine that when most traders get back from vacation, college football season is getting started and the fall is upon us, we will see mortgage rates catching up to the 10 year yield.

If you have been thinking about refinancing or getting your first mortgage, now might be as good of a time as any as mortgage rates are still hovering around 5.25%.  Historically speaking, this is about as low as mortgage rates get minus that short period of time back in March when rates were actually below 5%.

Please use Subprime Blogger to get your mortgage rate trends; all trends articles are updated Monday, Wednesday and Friday.  There are also several articles to help you get a home loan modification.

Current mortgage rate trends have been quite boring lately as there has been VERY little volatility.  It seems like mortgage rates have moved in the range of 5.1% to 5.3% for what seems like a month, although I know it has not been that long.  The 10 year treasury rate yield pushed much higher for a few weeks and now that is settling down as well.  I truly believe that mortgage rates are going to move up to catch up to the 10 year yield uptrend but no one really knows when that could happen.

With the uptrend of the 10 year yield still intact, one would think that the long term mortgage rate trend has been bottoming for quite some time and is now heading higher.  The next few months will go a long way in helping us figure out the trend of overall mortgage rates.  The government has worked hard to keep mortgage rates lower but eventually the market is going to set rates and it sure feels like those rates set by the market are going to be much higher than what they currently are.

If you have been thinking about refinancing or getting your first mortgage, now might be as good of a time as any because mortgage rates could pop at any minute.  This is especially true if the 10 year yield has another week of being up 10%.

It is hard to believe that we are already to the last day in July.  It seems like the summer just started a few days ago.  With that being said the 10 year treasury rate yield continues to work sideways after a two week strong move up.  The GDP data this morning will move treasury rates but lets see what happens in the aftermath.  Overall, I still think we are going to see mortgage rates catch up to the 10 year yield at one point but who knows when that will be.

The equation used for the correlation between mortgage rates and the 10 year treasury rate is

y = 2.7283(x)^2 + .5881(x) +.0308.

10 Year Treasury Rate – 3.64%
The correlation shows that the 30 year fixed rate should be approximately 5.58%.  Actual rates…

30 Year Fixed Rate Mortgage – 5.25%

Please get your mortgage rates forecast at Subprime Blogger.  Return every Monday, Wednesday and Friday as that is when the forecast is updated.

The mortgage rates forecast remains quite unpredictable as the 10 year yield continues to push higher while mortgage interest rates are stable around 5.25%.  Eventually mortgage rates are going to push higher or the 10 year yield is going to fall but the question remains which will happen first?  Well, if the trend that started back at the beginning of 2009 is any indication, it looks as if mortgage rates will start moving higher and the 10 year yield will continue its uptrend past 4%.

I know this is not what most borrowers want to hear but it is the reality of the situation.  For almost 40 years the 10 year yield and mortgage rates have moved in tandem so do not expect anything to change in 2009.  With that being said, if you have been waiting to refinance or get your first mortgage, now is as good of a time as any as mortgage rates remain below 5.25%.  Historically speaking, this is extremely low and most home owners would die for an interest rate this low.

I would suggest contacting several lenders and seeing which one is the best fit for you.  You would be surprised at how much information you can get over the phone and on the Internet.  Make sure to educate yourself before making this big financial decision.  You do not want to have legal trouble later on in the mortgage because you did not pick a reputable lender.

Please use Subprime Blogger to get your mortgage rate trends; all trends articles are updated Monday, Wednesday and Friday.  There are also several articles to help you get a home loan modification.

Current mortgage rate trends have not changed much as there has not been much movement in the 10 year treasury rate yield this week.  The 10 year yield still sits around 3.67% which is still well above the level for average mortgage rates, but it looks like mortgage rates are not going to budge quite yet.  It will be interesting to see which one moves first; does the 10 year yield come down or does the 30 year fixed rate mortgage go up.  Seeing as the 10 year yield has been in an uptrend since the beginning of the year, I would say that mortgage rates will go up.

If you have been thinking about refinancing or getting your first mortgage, now might be as good of a time as ever as mortgage rates are still at historic lows but are likely to move higher.  Average mortgage rates are around 5.2% now, but it is very possible that we could see them move up drastically in the near future.  I would suggest contacting several lenders to see what types of offers they can make for you.  Obviously they will not be able to give you an exact interest rate but they should be able to tell you a little bit about where the market is headed.

Do not sit on the fence too long as mortgage rates could be around 6% soon if the 10 year yield continues to push higher.  Take action and complete that mortgage application that has been sitting around for the last few months.