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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? l3 B% K4 U" D0 _0 q- F- Z f) V
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Banks last raised mortgage rates on June 9, when the 5-year bond yield was at 2.68%.
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5 D7 Y3 y1 R7 ]+ c3 r0 O: a! LSince then, the 5-year yield (which guides fixed mortgage pricing) has fallen to 2.44%, but bank rates have not budged." N% S( P* T, I) V5 ~4 H1 z! v
W, Y; h0 d& q8 X$ H' ~$ TBMO 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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# e- W6 g: X% L; t& u* r2 S# L4 C) THe 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." l& ?. v( u7 [( l
. [, B; q- o- _2 U8 eThe 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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2 g/ p$ n( L$ u% { vIf 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 $478 over five years, assuming a 25-year amortization and typical fixed rates.' C5 g4 w" Z7 ~; l( C, ~
& K$ Z" A( L0 B4 [3 ?, yBut 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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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.' l) ~9 u" H- y1 ]4 q$ u& D
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- A; k x1 R) U8 awww.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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