About Government Refinance and Home Purchase Programs

Information and Updates on Government Mortgage Programs
Filed under Government Mortgage Financing Programs News

After rising fairly steeply since the end on 2010, interest rates on government-backed mortgages finally dipped a bit over the last several weeks. In the latest few weeks the turmoil in Libya has caused a domino effect started with a falling stock market which in turn increased demand for US treasury bonds which helped lower mortgage interest rates slightly.

Even after the rise in rates over the winter, rates are still surprising low by historical standards. For that reason the recent dip in rates is not likely to hold for long. The Fed and Obama administration have gone to great lengths to compress interest rates for around two years now. But those efforts won’t last for ever and there are signs that they are slowly losing effectiveness. The result will likely eventually be 30-year mortgage rates at more than 6% like we saw just a few years ago. When rates increase like that many people with adjustable rate mortgages will see their payments go up by hundreds of dollars per month. But in the meantime rates are still very low.

If you have an adjustable rate mortgage or if you have a fixed rate mortgage that is higher than you want, contact us in the sidebar right away before interest rates start their upward climb again. One of our counselors can point you in the right direction to take advantage of the government-backed refinance programs that are available.

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