Refinance Rates Very Near Year's Lows
Mortgage refinance rates are very near the year's lows as the mortgage spread premium dropped about .35%, while the 10 year treasury yield continues it's descent.
Huge news with Lehman going under, Merrill taken over, and AIG liquidity issues have led to a flight to the safety of bonds, which is good for mortgage rates ... maybe not so good for the economy.
The government's takeover of Fannie and Freddie is playing a big part in the mortgage spread decline. As investors feel more secure in mortgage backed securities, the risk premium declines and mortgage refinance rates go down.
Housing numbers and values are still taking a beating, but at least we have one bit of good news on the inflation front. Oil has finally dipped below the $100 per barrel mark. This can go a long way toward curbing inflation and helping our economy.
These are in deed historic times on Wall Street and expect more wild flucutation in refinance rates. The good news now is that rates are low. The bad news is that property values are still suffering with no clear stabilization in sight.
The dwindling landscape of big investor money players such as Lehman and Merrill, along with fear of other big firms facing bankrupcty does not look good for near term investor confidence in the home finance markets.
If we have learned anything this year, it's to refinance on the dips. Today's low rates can be gone in a day. 10 year treasury yields can go up rather quickly, along with the mortgage risk premium in today's economic environment.
For those that are refinancing now or looking to refinance, now is a great time to lock while rates are low.
May the Mortgage Rates be with You!
Refinance Tool Box
Huge news with Lehman going under, Merrill taken over, and AIG liquidity issues have led to a flight to the safety of bonds, which is good for mortgage rates ... maybe not so good for the economy.
The government's takeover of Fannie and Freddie is playing a big part in the mortgage spread decline. As investors feel more secure in mortgage backed securities, the risk premium declines and mortgage refinance rates go down.
Housing numbers and values are still taking a beating, but at least we have one bit of good news on the inflation front. Oil has finally dipped below the $100 per barrel mark. This can go a long way toward curbing inflation and helping our economy.
These are in deed historic times on Wall Street and expect more wild flucutation in refinance rates. The good news now is that rates are low. The bad news is that property values are still suffering with no clear stabilization in sight.
The dwindling landscape of big investor money players such as Lehman and Merrill, along with fear of other big firms facing bankrupcty does not look good for near term investor confidence in the home finance markets.
If we have learned anything this year, it's to refinance on the dips. Today's low rates can be gone in a day. 10 year treasury yields can go up rather quickly, along with the mortgage risk premium in today's economic environment.
For those that are refinancing now or looking to refinance, now is a great time to lock while rates are low.
May the Mortgage Rates be with You!
Refinance Tool Box
Labels: business, economy, finance, money, mortgage rates, refinance
posted by Jim Bisnett at
3:04 PM
1 Comments:
The best part of Mortgage Refinance is that it provides you with a huge amount of extra cash. The equity you have built in your home over the years entitles you to this extra cash from refinancing. You can use this extra cash for many purposes, ranging from debt consolidation to home improvement to funding your children's higher education.
Post a Comment
<< Home