Jul 27, 2009
30 Year Fixed Mortgage Interest Rates - Up or Down?
30 year fixed mortgage interest rates have been hovering between 5% and 5.4% over the last few weeks which is quite interesting. It is interesting because the 10 year treasury rate yield has moved from 3.3% to 3.7% in just two weeks. With this drastic move higher, one would expect mortgage rates to follow. That has not been the case quite yet but it does not mean that it will not happen in the next few weeks.
The last time there was a major disconnect between the 10 year treasury rate yield and 30 year fixed mortgage rates, average mortgage rates moved almost a full percent in ONE day. In late May, we saw interest rates shoot up very quickly in a short period of time. If this happens again, look for mortgage rates to be over 6% in one quick shot. It might take another push higher by the 10 year treasury rate yield, but that seems likely with the up trend remaining strong.
If you have waited to refinance or get your first mortgage, make sure to take some initiative and get it done now. If you wait a few months or even a few weeks, it might be too late and mortgage rates could have moved up over a full percentage point. Make sure to educate yourself on the mortgage market and get the best possible rate.