2010 has been kind to mortgage shoppers thus far, with rates having fallen each week of the new year. Recent market jitters traceable to uncertainty over Bernanke’s reconfirmation as Federal Reserve Chairman and President Obama’s proposal on the separation of trading from banking activity helped keep mortgage rates moving lower. Mortgage rates are closely related to yields on long-term government and mortgage-backed bonds. The Fed seems intent on wrapping up mortgage bond purchases at the end of the first quarter. Economic worries notwithstanding, this will eventually push mortgage rates higher.
The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 5.13 percent, the monthly payment for the same size loan would be $1,089.59, a savings of more than $150 per month for a homeowner refinancing now.
2010 has been kind to mortgage shoppers thus far, with rates having fallen each week of the new year. Recent market jitters traceable to uncertainty over Bernanke’s reconfirmation as Federal Reserve Chairman and President Obama’s proposal on the separation of trading from banking activity helped keep mortgage rates moving lower. Mortgage rates are closely related to yields on long-term government and mortgage-backed bonds. The Fed seems intent on wrapping up mortgage bond purchases at the end of the first quarter. Economic worries notwithstanding, this will eventually push mortgage rates higher.
The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 5.13 percent, the monthly payment for the same size loan would be $1,089.59, a savings of more than $150 per month for a homeowner refinancing now.
Daily Venus Diva -- Daily Venus Diva.
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