Mortgage Rate Trends Predicting Low Mortgage Rates? [mortgagerefinance-101.blogspot.com]
Real-estate website Zillow Inc. (Z) said Tuesday its real-time rate on 30-year fixed mortgages in the U.S. fell to a new all-time low, as the rate has consistently dropped for much of this year. Zillow said the 30-year fixed mortgage rate on its ... US 30-Year Mortgage Rate Hits New Low
How we predict mortgage rate movement
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Many analysts believe that the recent downward mortgage rate trend has been broken. When you look at a long term chart of rates, it is very obvious to see that they have been going down for over two decades. It is hard to compare the early 1980s to any time in recent history as there was hyperinflation in the United States and home loan rates were above 16%. This is highly unlikely to ever happen again, but if the Federal Reserve continues to spend money, we very well may try to test that level.
Mortgage news has continue to deliver the current story of the 10 year treasury rate correlating to the 30 year fixed rate mortgage. If you look at a long term chart, since 1971, you will see that there is a strong relationship between the two. There are very few times in this short history that the two sets of numbers separated in a large way. With this being known, one would think that they would go in tandem either up or down.
Since the beginning of 2009, the 10 year has been in a strong uptrend which has not been the case for overall rates. The mortgage rates trend continued down.At the end of May and the beginning of June that all changed as mortgage rates jumped enormously to coincide with the 10 year treasury rate. Over the last week we have seen the 10 year treasury rate pull back quite a bit, so one would think that rates would do the same. This would mean that the overall downward trend in mortgage rates remains intact. Only time will tell.
Suggest Mortgage Rate Trends Predicting Low Mortgage Rates? IssuesQuestion by kizmet_or_beer: anyone have an eye on current mortgage rate trends? I am buying a home and the rate right now for my loan is 6% (Wells fargo Home opportunities loan 100% financing). Conventional is 5.875 and that is down from last month so I am wondering if I should just lock in my rate or if it is expected to go down more or up soon? I need a good backing for my decision either way. Please help. Best answer for anyone have an eye on current mortgage rate trends?:
Answer by oaklandted
Lock in now, or soon; the rates are bottoming out.
Answer by David W
6% is pretty good. You could get the lowest rate by putting some more money into it, but trying to get it down another 1/8 of point is not worth the effort. Rates are going to stay the same for the next 6 months (move up or down a 1/8 point.) since the Federal Reserve has indicated that they are not going to change interest rates soon unless it gets data that differs from their expectations. Go ahead and lock it in. To see the difference, I suggest you go to www.bankrate.com or www.mortgage101.com to see how much the 1/8 of a point will make a difference. Just a bit of information, if you have your bank account at Wells Fargo, they could give you a discount on your rate. (maybe an 1/8 or a 1/4). You just have to ask about it.
Answer by Jen G
10-year Treasury notes are a benchmark for setting Mortgage Interest Rates. Go to Yahoo home page and click on Finance and you can view the activity the Bond is having on any given day. I agree with taking advantage of "Buying down your rate" if you look at the fully amortization calculator on www.bankrate.com you can really see the difference between two rates and calculate the money you would save on your loan. Good Luck!
