At the beginning of this month, a couple of key US government programs aimed at keeping mortgage rates low expired. There were many on the street that expected refinance mortgage rates to climb during the month of April, but so far, rates continue to remain near record lows.
The yield on the 10-Year Treasury briefly flirted with breaking the 4.0% key level to the upside, but just as it has done for the past year, it retreated back. This is really helping refinance mortgage rates to stay low.
The mortgage spread premium was expected to move up a bit after the government buy-back programs ended, yet it remains intact at the level prior to the program expirations.
Banks have been reporting stellar earnings numbers recently and this may be having an impact on the mortgage spread premium. As their balance sheets and cash reserves improve, they want to make more investments. Since the standard mortgage underwriting guidelines are keeping investors in a much safer place with today’s loans, there is some competition among lenders to get your business. This is a good sign.
Housing continues to the sore thumb with our economic recovery and could still be a major issue in the coming year for both mortgage lending and the overall economy. There have been some signs of housing price stabilization, but it is still too early to call a bottom for the market.
30 year fixed rate mortgages still are being offered near 5.0% for the par or even rates, while 15 year fixed rate loans on average are near 4.5%. The spread between the fixed rate mortgage loans and adjustable rate loans appears to be widening again as ultra-low 5/1 ARMs are being offered near 4.0% for some loan scenarios.
So yes, it is still a great time to take advantage of the low refinance mortgage rates, but as always, make sure you have a decent grasp on the current market value of your home before you get rate quotes. Home value has been the major stickling point in attaining the sweetheart mortgage refinance loans available on today’s lending market.
If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
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