We are seeing the first 5.25% rate in recent memory. The bond market was open only a half day today, but the coincidence of this rate and the supposed conclusion of the MBS buying by the Fed is something to consider.Regardless, where interest rates are headed in the short-term, we are at the start of a long- climb in rates.If you haven't long in rates on your long-term borrowings by now, you better act quickly. The window on rates below 5.0% is closing.
On 3-25 we were at 5.125%
3-18…….4.875
3-11……4.875
3-4…….4.875
2-1…..4.875
1-4…..5.125
12-1-09……..4.625
11-2……4.875
10-1……4.875
9-1…..5.125
7-31…..5.125
4-1-09……4.625
So I would say that the next week or so will determine whether this 5.25% is a blip or a harbinger of a more lasting upward push toward a 6.00%...
But, I just don’t see the Fed exiting the MBS market—too many things are affected by a 6.00% mortgage…..bank balance sheets, home values, etc.
Friday, April 2, 2010
Are Mortgage Rates Headed for a Quick Move to 6.0%
Mortgage rates moved to the 5.25% range today. Michael Dunton, senior V.P. at Mt McKinley bank emails:
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment