 鲜花( 65)  鸡蛋( 0)
|
楼主 |
发表于 2009-7-18 08:28
|
显示全部楼层
ZT - TMG - Will 5-Year Mortgage Rates Fall Further?) P( C! j n& v, R6 k& l- Y5 b
B" n$ b8 M. v q' R
Banks last raised mortgage rates on June 9, when the 5-year bond yield was at 2.68%.
6 i; ^$ C! a' ~8 _
& P: }/ G1 ?8 GSince then, the 5-year yield (which guides fixed mortgage pricing) has fallen to 2.44%, but bank rates have not budged.* \' X) r4 w0 O
1 _5 N/ |3 h6 f. |! D$ P
BMO economist, Doug Porter, told the Toronto Star it's because banks "want to be convinced that it is not a flash in the pan and that any retreat in yields is sustained."
. d5 z* }% H, I+ c
& H( F* m8 Z' i6 Z9 o0 t6 n# @He says: "I believe that we are probably not too far away from that point. It might take a little more of a deeper rally (in bond prices) to make it completely convincing."( S3 X" E) g4 q& u5 J; b6 B
" X7 t9 z; k5 cThe often quoted CIBC economist, Benjamin Tal, thinks yields could fall another 0.05% to 0.10%, but any drop in fixed-rates will be short-lived. "By the end of the year, we'll start seeing rates rising," he says.& \) B! A! Y# f+ Z8 ^
% G( ^. |. n# U0 s
If rates do drop another 0.10%, it would translate into a $5.50 monthly payment savings for every $100,000 of mortgage. That's a total savings of $478 over five years, assuming a 25-year amortization and typical fixed rates." j1 | Q4 F- ?
1 v& `% a3 l% }6 N' ~
But remember, trying to time bond and mortgage rates is financially hazardous. While you're waiting, rates can move the wrong way-quickly.
$ k" g4 B3 _ q5 Q. T e! m- t8 |. @8 v0 P$ S
You're usually better served by focusing on factors that can dwarf a 0.10% rate savings, like finding a mortgage with the optimal term and just the right amount of flexibility (pre-payment options, openness, readvanceability, etc.). Too much flexibility is a waste, and too little can cost you in the long-run.
# {: }% R+ G w) j% h4 N& V6 Y. ~, p9 J$ g2 U+ B
7 W4 l8 E8 M! c% q2 s
www.happymortgages.com |
|
楼主: 郭森房贷
狗仔卡
发表于 2009-6-24 17:04
显身卡
