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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?( C- D" b; c0 p; y" I
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Banks last raised mortgage rates on June 9, when the 5-year bond yield was at 2.68%.9 Y1 ]4 u$ ~- h/ Z: ^8 j
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Since then, the 5-year yield (which guides fixed mortgage pricing) has fallen to 2.44%, but bank rates have not budged.
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$ A1 z. a& T9 H" z& [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." . s( r4 b& G ~ c* F/ E
3 R P0 z$ o( x E: T4 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."
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$ D- d; D+ o6 U/ X5 ~9 j6 fThe 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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1 g! H8 ` v' H6 n" @3 kIf 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 $478 over five years, assuming a 25-year amortization and typical fixed rates.
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But remember, trying to time bond and mortgage rates is financially hazardous. While you're waiting, rates can move the wrong way-quickly.
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2 _ T" o* U% l$ 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.
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) I K& e2 j+ \+ N' b" W6 wwww.happymortgages.com |
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发表于 2009-6-24 17:04
