Refinance Mortgage Rates [mortgagegoal.blogspot.com]
Mortgage Refinance
Mortgage Rates Rise
Mortgage rates on fixed mortgages have ticked up for the fifth straight week, reflecting higher yields on long-term Treasurys, according to insiders. Freddie Mac, the king of mortgages, said that the the average rate on a 30-year fixed mortgage rose to 4.83 percent from 4.61 percent in the preceding week. Last month (November), the mortgage rate reached a 40-year low of 4.17 percent.
The average rate on the 15-year loan also ever so slight increased to 4.17 percent from 3.96 percent. It reached 3.57 percent in November (last month), the lowest level on records dating back all the way to 1991, if you can believe that. Mortgage rates are on the rise after falling for seven straight months. Investors are slowing moving money out of Treasurys and into stocks, according to insiders.
That's based largely on the speculation and expectation that the tax-cut plan that Congress is apparently all but ready to bless will spur growth and potentially higher inflation. Other fear the bill might actully "spurn" growth, rather than spur growth.Sigh.
What are yields and how to yield work? In essence, these so-called yields tend to rise on fears of higher inflation. Mortgage rates track the yields on what's known as the 10-year Treasury note. The sell-off and run in the 10-year Treasury note is complicating the Federal Reserve's efforts to lower interest rates by buying up $ 600 billion in Treasurys. Truth is, there is nothing "Federal" about the Federal Reserve at all.
Yet some traders had hoped the central bank would boost the scope of its purchases to keep interest rates down.The increase in mortgage rates already is sending chills through the housing market. Refinance activity apparently fell last week for the fifth straight week, while the number of people applying for a mortgage to purchase a home dropped 5 percent from the week before. This again, according to insiders with knowledge. Yet how are mortgage rates calculated today? To calculate average mortgage rates, Freddie Mac collects rates from mortgage lenders across the country on Monday through Wednesday of each and every week. These mortgage rates often fluctuate significantly, even within a single day.
More Refinance Mortgage Rates IssuesQuestion by : When is the best time to get the lowest refinance mortgage rates? Best answer for When is the best time to get the lowest refinance mortgage rates?:
Answer by John B
Depends on many factors.
Answer by Talk Turkey
Rates right now are at historic lows, and many believe they could not go any lower. Do not buy a home just because of low interest rates though. Buy one because you need one. Go to bankrate.com and look on the right for the nation-wide averages.
Answer by Tom Z
The interest rates on mortgage loans are very low right now. But the best time to refinance is when you have an excellent credit rating. The low rates you see advertised on TV are not given to those with less than stellar credit scores.
Answer by Milton
Right now the rates are the lowest in modern history.
Answer by Kevin King
Times will vary in the the market, it really just hard to determine. It's like trying to time the market to strike it rich. There are just so many external factors involved that you'd likely be better off not trying to "time'" the market, but rather just do good research for your situation and the offers that you're presented with. Look at the financial climate at the time, compare average refinance rates at the time - and make your decision in conjunction with the help of a professional mortgage consultant.
