Interest rate predictions have been quite difficult to make as mortgage rates have been very volatile during the month of August. We have seen home loan rates move from 5.05% to 5.5% and back down to 5.1%; this is making any type of predictions hard.
Interest rate predictions can greatly help you when you are deciding on making a large purchase, particularly a home. When most people think of mortgage rates, they just assume that they are at a certain level because the markets think they should be there. Well, that is partly the case, but not always. It is definitely not the case in the current economy as the government has been playing a vital role in keeping overall rates very low. The question many people are asking is will mortgage rates drop further?
Since the beginning of 2009, home loan rates have not gone higher than 5.59%. This is quite unusual as the 10 year treasury rate yield has been in a steady uptrend since the beginning of January. Usually, when the 10 year treasury rate yield is up trending, we see overall rates move up as well. The reason that we have not seen that in the year 2009 is because the Federal Reserve bank is printing money at will to make sure that interest rates stay at historically low levels.
The Federal Reserve Bank chairman himself, Ben Bernanke, has made statements to suggest that the government is willing to do whatever it takes to keep rates at a level never seen before. This is great news if you are in the market to refinance or get your first mortgage. You could be one of the few people in America that can lock in at a rate below 5%. This could greatly change the amount of money you pay on your overall home loan.
Subprime Blogger offers a series on interest rate predictions and how they affect your life. If you want low mortgage rates Subprime Blogger is the place to come for information.
