 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?1 v7 q$ p1 a9 _: x, t
' R6 r1 G; Q5 }# A4 u
Banks last raised mortgage rates on June 9, when the 5-year bond yield was at 2.68%.
9 T8 i0 ]) t. q1 R
' m! b6 q* q# B' Z* U' T4 kSince then, the 5-year yield (which guides fixed mortgage pricing) has fallen to 2.44%, but bank rates have not budged.2 K2 j- F; H& V& ^& q3 }; U6 x
" _. [; a) N5 y( ]2 Q6 y5 g2 rBMO 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."
7 l1 S4 b& V* d0 s
6 `* C4 V$ }: d7 d" wHe 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."
" r; C: W0 U2 a. h
- N# u6 f; T' I2 yThe 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.
! A; u% Z$ T" h" v& F: W$ ]# ~1 s& s: g
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 $478 over five years, assuming a 25-year amortization and typical fixed rates.
. g% J. H; J" n0 L
# _% U$ f. ~, \) a' I! S5 lBut remember, trying to time bond and mortgage rates is financially hazardous. While you're waiting, rates can move the wrong way-quickly. 7 j% f4 {* S: m4 {
: {' T% T; {$ c7 hYou'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.& M9 d5 M. M4 I
1 \, M. B# [) F5 \+ ?7 I: n4 |5 _/ L: a
www.happymortgages.com |
|
楼主: 郭森房贷
狗仔卡
发表于 2009-6-24 17:04
显身卡
