 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?8 i1 { T2 q# y/ h
' i8 F6 C z" M( T0 _+ TBanks last raised mortgage rates on June 9, when the 5-year bond yield was at 2.68%.
b- `6 K: s; k0 j+ ^
: U; T) e) d) P S) HSince then, the 5-year yield (which guides fixed mortgage pricing) has fallen to 2.44%, but bank rates have not budged.
1 y$ z+ Y% D" s8 |( k6 Z
) m7 U" l1 {6 g: zBMO 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." 8 `: p& H c' i/ q$ b1 r
# f. n, o- B1 k$ W7 k( i2 [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."
: T. g' R; D7 F) h* G4 g3 j) y$ \5 c2 m5 ^3 S7 H3 D
The 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.
" D- j, l) a4 ]4 w7 O. ^; F
$ c: e9 u5 {) J2 E# P! p* uIf 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 $478 over five years, assuming a 25-year amortization and typical fixed rates.
% }4 ~" T9 }8 \: M0 u- n4 K% J0 R& ?( m$ M) |2 c- Q5 Y/ v% g/ [
But remember, trying to time bond and mortgage rates is financially hazardous. While you're waiting, rates can move the wrong way-quickly. 9 S$ r* w# `; O5 i6 S; D
* W7 n) F @2 o# M1 n
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.
5 T- o6 `9 N8 B: w
) t8 m7 X( e5 A; L! s! x$ ?: S
; Q, C5 T4 | f# x5 r# Zwww.happymortgages.com |
|
楼主: 郭森房贷
狗仔卡
发表于 2009-6-24 17:04
显身卡
