Since early last week, mortgage rates leaped from around 5% to approximately 5.5%, steadily moving toward 6%. Even though the 10-year Treasury rate is back down today, it is certainly not down enough to make up for the huge jump it made last week. As the 10-year Treasury eventually makes its way back to the 4% range, experts believe mortgage rates will move swiftly to 6% and beyond.
As mortgage rates slowly inched up last month, homeowners hoping to refinance lost interest rather quickly. When and if mortgage rates do climb back to the 6% range, it will be interesting to see how the housing market reacts to purchases, as well.
While mortgage rates are still low, existing homeowners need to act now to refinance. Those looking to purchase their first home should act now for two reasons: rates appear to be on the rise and the $8,000 first-time homebuyer tax credit is due to expire on November 30, 2009, just over three months from now.
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PianoMan
November 18, 2009 @ 9:09 pm
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