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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?
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# _7 y/ a: x8 n( v7 \Banks last raised mortgage rates on June 9, when the 5-year bond yield was at 2.68%.2 P! }9 n/ g( R
4 j. G7 E6 x% @7 ]* T1 cSince then, the 5-year yield (which guides fixed mortgage pricing) has fallen to 2.44%, but bank rates have not budged., J3 J/ X) X8 m9 I) l' S
0 y7 g- u% F" J d# e/ U8 ?9 H( pBMO 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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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."8 V& \4 n( Z K6 x( R) g/ |: t
) Y2 [" ~ x1 R5 S: ]/ MThe 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 $478 over five years, assuming a 25-year amortization and typical fixed rates.
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5 w$ v1 r! q j- H" Z7 z, SBut remember, trying to time bond and mortgage rates is financially hazardous. While you're waiting, rates can move the wrong way-quickly. 8 c, @( \# _: p
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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.. p0 i7 \3 j% M) L0 e2 ~4 d
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楼主: 郭森房贷
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发表于 2009-6-24 17:04
