 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?
3 C* A7 m: H$ H
$ U7 N/ U# @- y/ U- gBanks last raised mortgage rates on June 9, when the 5-year bond yield was at 2.68%.
# K6 C9 h3 B8 Z0 Z V- b3 T# T) \$ _! d
Since then, the 5-year yield (which guides fixed mortgage pricing) has fallen to 2.44%, but bank rates have not budged.$ K c& F2 i& @/ t5 {9 n
% n( F9 E) g" ^0 A% G4 s' C1 wBMO 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."
+ q* G; I0 d# R) L5 |- J
% v; L5 y+ z) e" gHe 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."6 N+ O8 @3 a/ E; p5 x9 {
4 a- {8 K2 F' M1 Y1 @& o, ?+ n3 J1 X5 VThe 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.9 X- l. p0 l U" j0 Z4 P7 }
3 g' v5 \: k A% X X' z( d
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.
0 b4 \( N; k* r' V( J( A0 p
# Y* c$ W. X2 o: WBut remember, trying to time bond and mortgage rates is financially hazardous. While you're waiting, rates can move the wrong way-quickly. 6 B2 i2 M4 ^; O& s
# b1 U+ G% P9 j, vYou'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., C9 N9 ^! r7 k! f( t6 m: ~
: S: r* I+ }6 Q: b& }- J$ o
! ^% |% h. R5 v* [ J. S3 j( o8 uwww.happymortgages.com |
|
楼主: 郭森房贷
狗仔卡
发表于 2009-6-24 17:04
显身卡
