Fixed Rate Mortgage - Is Now the Time to get in a Fixed Rate?

The fixed rate mortgage is the most stable way to pay for your home.  No matter what, you are going to get consistent monthly payments.  An adjustable rate mortgage is constantly adjusting to the rates that are often unknown my the owner of the home.  After a certain period of time, the overall rate of the loan will adjust to something much higher.  Sometimes this is three years, sometimes its five and in all reality the mortgage lender can make it any period of time after the loan is signed.

Due to the uncertainty of an adjustable rate mortgage, many home owners are now trying to lock in to a fixed rate mortgage.  No matter what the case, you will find that a fixed rate will always provide the same monthly bill until you are on the back end of the loan; then the payments will gradually decrease. 

With this knowledge, many home owners are trying to predict where average rates are headed so they can lock into a low rate.  The best way to do this is to keep an eye on the treasury rate.  As the 10 year treasury rate goes, so goes the 30 year fixed rate mortgage.  Since the beginning of 2009, the treasury rate has been in a steady uptrend but has recently tested the bottom of the trading range.  Over the next few weeks it will be interesting to see if the 10 year gets a bounce off its support level or it breaks through it and heads much lower.