Low Mortgage Rates - How Long Will They Last?

Low mortgage rates are a luxury that Americans have had for quite some time now.  Since October of 2008, interest rates have been in a steady decline.  The only true bounce we have seen since then was at the end of May when rates rose to 5.59%.  Even at 5.59%, we are still looking at a historically low number for overall rates.  Part of the reason that we are seeing extremely low mortgage rates is because the government is doing everything in their power to put a cap on interest rates.

Wells Fargo mortgage rates have followed the overall trend of rates, but we will see a jump sometime in the near future.  The government continues to auction off treasury bonds to push the 10 year treasury rate lower, but eventually they are not going to be able to keep doing this at a record pace.  No one knows when we will see another bounce in the 10 year, but it is currently sitting at a strong support level in the form of the 50 day moving average.

If the 50 day moving average holds throughout this week, look out for interest rates to head higher next week.  Of course, the Federal Reserve and Treasury is going to do all they can to force the 10 year under its support level but sometimes the government cannot force rates where they want them to be.  Overall, now might be the best time to lock in some low mortgage rates before it is too late.  Wells Fargo offers the most security of all the lenders as they avoided the subprime mortgage crisis.