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发表于 2009-7-18 08:28
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ZT - TMG - Will 5-Year Mortgage Rates Fall Further?. Z& W; I. x) R' n
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Banks last raised mortgage rates on June 9, when the 5-year bond yield was at 2.68%.( V3 m. d) ~2 a3 {
* j% }9 A6 s6 k& o. TSince then, the 5-year yield (which guides fixed mortgage pricing) has fallen to 2.44%, but bank rates have not budged.3 C+ {6 @2 n/ }; S8 J$ G
# m6 D+ A9 _5 T: Y$ n% ~+ B3 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."
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! g( U. M% z; `4 ]- n+ xHe 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."+ H; R1 T' z: W9 z( I; ]
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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.
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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. q/ M2 R- z- i3 i
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But remember, trying to time bond and mortgage rates is financially hazardous. While you're waiting, rates can move the wrong way-quickly. 8 Q1 S6 E5 f3 O- w9 d
1 E3 T8 w& ?& S: C6 S3 ZYou'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.3 |3 ~/ A8 V9 M
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+ F* q, I3 \7 ]www.happymortgages.com |
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楼主: 郭森房贷
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发表于 2009-6-24 17:04
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