I must say that every time I feel that the 10-Yr Treasury Yield along with refinance mortgage rates are set to rise, the exact opposite occurs. That is why I always tell my clients not to try to read where refinance rates will go, just react to the current market. If you are sitting on a rate lock opportunity that meets your financial and short/long term refinancing goals, then it’s time to move forward with the application.
The Fed recently announced that the end of the 600 Billion dollar treasury buyback program will end this summer. On that news, coupled with a continued upswing in the stock market, one would suspect bonds to get crushed, yet there is still a flight to security in bonds, which is always good news for refinance mortgage rates.
So, in a nutshell, if you’ve been sitting on the fence waiting to refinance, rates are swinging down closer to the all-time historic lows reached last year.
Housing is still a muddied mess in my opinion. Although we have experienced better sales numbers, home prices continue to decline. Supply has shrunk a bit, but there are still an undisclosed major number of bank owned properties on the sidelines, yet to hit the market. Unfortunately, I don’t see a rising home value market for at least another year and quite possibly longer.
I continue to see those crazy refinance mortgage ads stating rates lower than 3.0 percent, with no fine print. I would suggest that you don’t be suckered in to those lenders/lead companies looking to get your business. You will quickly find out that the mortgage rates listed in the ads are for risky short-term adjustable rate mortgages and/or interest-only programs. The old “used-car salesman trick”, or “bait and switch”.
Depending upon your refinance loan scenario, you can most likely get in on a 30 Year Fixed Rate mortgage at under 5.0% with no points and around 4.0 % for a 15 Year Fixed Rate. Yes, there are some extremely nice benefit options still available for a lot of homeowners out there.
Risks to mortgage rates rising continue related to inflation and the economy. I’m sure you have noticed the $4 per gallon gas prices. This condition in addition to the Fed money-printing machine could spell significant inflation down the road. An improving economy and stock market could also put a big kibosh on current historic low refinance mortgage rates. I am all for an improved economy and hope it comes sooner rather than later, but inflation is the nasty after-effect I could do without.
All in all, still a great time for great mortgage rates for the time being.
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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