About Government Refinance and Home Purchase Programs

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

Mortgage rates have jumped more than half of a percent in the last week or so and continued to rise today. A number of factors in the markets are contributing to the rise. For now the days of mortgages at or below 5% appear to be gone. Now is the time to refinance if you have been thinking about it befor rates get back above 6% again.

Here are some quotes from a recent CNNmoney.com article on the subject:

Home mortgage rates jumped in the most recent week, pulled higher by rising Treasury yields, according to a report released Thursday.

The average 30-year fixed mortgage rate rose to 5.45% in the week ended Wednesday, up from 5.24% last week, according to a weekly national survey from Bankrate.com.

“Investors’ nerves were rattled by a potential General Motors bankruptcy and a week of substantial government borrowing,” which “agitated would-be bond investors,” the report said.

Mortgage rates move in tandem with Treasury yields. In particular, the 30-year fixed mortgage rate tracks the benchmark 10-year Treasury yield. In recent days, that benchmark yield has spiked to levels not seen since November 2008.

Even as mortgage rates continue to rise, they still remain much lower than last year, when the average 30-year fixed mortgage rate was 6.20%, according to Bankrate.com.

Comments (0) Posted by G.R.A. Admin on Thursday, May 28th, 2009

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