Mortgage Rates Rise Slightly
Dec 18th, 2007 @ 9:22 AM by MortgageMentor
Are you one of the people who has been waiting to refinance your adjustable rate mortgage? If so, it’s probably time to stop waiting and take action. In spite of the Fed cutting rates a full point since the beginning of fall, interest rates are not dropping significantly – and no wonder, considering the past few years’ incredibly positive market.
Fixed rate mortgages generally follow the 10-year Treasury bonds. Treasury yields went up last week, representative to some that the economy has became less of a focus to consumers. Seeing the job market hold steady, they’re feeling more secure and moving their monies back into stocks. This is probably an indication that they consider the recession less of a concern than first thought.
As a response to the Treasury securities, mortgage rates went up. The average rate on a 30-year fixed rate mortgage was 6.11%, compared to 5.96% two weeks ago. This was probably a surprise to those concerned about the housing market. The Fed cut ¼ point last week to 4.25% so many people expected housing loan rates to drop. In some parts of the country, they are still low – 6% or even less. But experts say that by next summer, rates could be around 6.5%. Consider starting on your refi now. To compare rates, visit a site like Free Rate Search, where you can compare mortgage interest rates.