Are 30 year fixed Mortgage Rates heading back to 4.25%? (refinancing, loan)

[mshan242709]

Reason I ask is that yield on 10 year Treasury is down to 3.15% (was above 3.5% quite recently).

I read that historically speaking 30 year fixed mortgage rates for best qualified buyers tend to run 1.5 - 1.75% above yield on 10 year treasury, though government intervention may have distorted that (e. g. I saw one commentator on CNBC say quantitative easing was artificially keeping rates about 0.4% below where they should be).

Can anyone comment on rates they are getting right now, in last few days, as stock market has sold off and money seems to be pouring into bond market?

[davenj08]

i hope they do. missed refinancing last year. will jump on it whenever it happens this time.

[Kevin1975]

Rates are at their lowest since December. Many experts are predicting a rise in the mortgage rates, especially with the Federal Reserve set to end its program of buying U.S. Treasurys in June.

[AMCBL]

Most I've read seem to think the expiration of QE2 will actually help rates, and lead to a sell off in equities. And the possibility of QE3 would be cause for rates to rise like they did @ beginning of QE2.

But as always don't get too caught up in getting back to the "lowest of 2010". Rates are indeed at best levels since December and very low compared to the highs of Dec/Jan/Feb.

[sonofagunk]

We also have to see what happens with Fannie/Freddie. the $729K limit will probably go back to $625K on 10/1/2011, just wondering what else they will do at the same time. $730K loan is 0.8% higher than a $729K loan right now.

[tahiti]

Originally Posted by Kevin1975

Rates are at their lowest since December. Many experts are predicting a rise in the mortgage rates, especially with the Federal Reserve set to end its program of buying U.S. Treasurys in June.

Did these experts predict they'd be at their lowest since December now?

[mshan242709]

The general trend is up (global economy is growing, inflation is real factor going forward), in part due to quantitative easing to be ending this summer (CNBC talking head estimated it was keeping rates down artifically about 0.4%).

Stock market volatility (mini-crash in commodities last week, talk about Greece leaving Euro, and general evidence that global economy is not growing as fast as expected) are all, most likely temporarily, pushing rates down.

If you can get refi at these rates (4.5%, even 4.75%), and you have over 6%, I'd be inclined to lock in now.

I wouldn't expect rates to go drastically lower unless it is becoming evident that global economy is indeed double dipping into recession and the Great Recession becomes Great Depression 2 with everybody talking about Japan style lost decade of deflation.

http://www.cnbc.com/id/40533411/Mortgage_Rates_Are_All_in_Your_Head