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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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Banks last raised mortgage rates on June 9, when the 5-year bond yield was at 2.68%.! d: \$ \" k' U% F
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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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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." 0 M8 X4 x' P/ u
: |" O* A; O1 y, v& Q* | I& 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."( U0 q- r8 V# }/ k+ e3 C4 q
# ~" H& \5 X) N, v- E2 i+ ]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.% G3 E2 {9 k, U4 r: X& {; n r- A3 C
0 X2 a+ E2 ]. d" c6 i& 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. - P- B0 V4 q0 N7 u" a8 p
/ `) b! U0 E% `% Z% k) u( _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.
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' X1 K) }0 ]7 A8 k! _6 twww.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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