Refinance rates dipped on the week, mainly due to the drop in the 10-year treasury yield. The yield dropped almost one-half percent since last week and is being reflected in mortgage refinance rates.
The mortgage markets have been a see-saw all year and this weeks action is just a continuance of business as usual. I have harped on this before, but if you are considering a refinance or out and out need to refinance, it's a good idea to lock on the dips.
If this year is any indication, rates could go up and down in significant percentage moves for some time to come.
The short term credit markets have opened up a bit, which is good news for everyone, yet long term credit lending such as mortgages, are still tight. Some very good news for the economy and possible refinance rates is the reduction in oil prices by 50 percent. This deflationary event could bring more investors to long term treasuries and help to stabilize low interest rates on mortgages.
Housing prices are still deteriorating and new construction is down big time due to the excess inventory of homes. We really need a stimulus for home buying to truly bottom out, not only in home values, but the economy as a whole.
May the Mortgage Rates be with You!
Refinance Tool Box
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