Economic Conversation

Fixed interest mortgage rates are likely to go up so it is wise to lock in now.  The 10 year treasury rate yield has moved up quite a bit in the last week so it is likely that we will see the 30 year fixed rate mortgage follow as well.  A 10% jump in the 10 year yield does not bode well for interest rates in the coming weeks.  It is very likely that we will see a pull back after such a huge jump last week, but there are still a few support levels that remain strong.  The current interest rate forecast does not look good for those wanting a low rate in the coming months.

If you have been thinking about going through the refinance process or getting your first mortgage, now might be the best time.  If you wait a few months, you may very well see mortgage interest rates in excess of 6%.  This could change your monthly mortgage payment over $100.  This is exactly what you do not want in the current economic crisis we are in.  If you take action now you could still lock in at rates under 5.5% but if you wait, mortgage rates are sure to head higher.

The most important bit of advice when going through the refinance process or getting your first mortgage is to educate yourself on the subject.  If you know the exact process and where mortgage rates have been and where they are likely to go, you could save yourself tens of thousands of dollars over the lifetime of your home loan!