February 22, 2010
February 22, 2010 by admin
Home loan rates continue moving lower in 2010 as the mortgage industry has benefitted from a pullback in the market. Bond yields over the past week have been relatively unchanged as the yield on the ten year Treasury bond is stil hovering in the upper 3.7% range. The lack of movement in the bond yields have not prevented fixed rate mortgage loans from dipping to their lowest levels in the past ninety days. Thirty year fixed rate mortgage loans are now available at or below five percent with most national mortgage lenders. The drop below five percent marks a significant correction with mortgage rates over the last two months, and an improvement by .25% for home loan interest rates in the past thirty days. The drop with long term mortgage rates is likely to benefit homeowners who have yet to refinance their home loans as well as consumers who may be in the market to purchase a new home in the next sixty days. Intererst rates last dipped below five percent in March of 2009 at a time when bond yields fell sharply in conjunction with the major selloff in the stock markets. This time interest rates have benefitted from concerns over international markets and less optimism over the quick rebound to the U.S. economy as well as a renewed confidence for investors in mortgage backed loan securities.
Political headlines could have an impact on the market this week. A proposed program for the creation of jobs is working its way through the Senate and could have an impact on both the bond and equity markets if passed as job creation remains the markets largest achilles heal. President Obama has also been working at revising the U.S. health care reform bill that now features the ability for the Federal Government to push through limitations on price increases as well as a number of other critical health care insurance reforms. These two pieces of legislation have the potential to dramatically impact the stock market which could in turn translate into higher bond yields and rates if there is a significant market rally and optimism for growth..