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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?9 b+ {9 u5 ^/ q9 X
_; t' o6 q8 r! v x$ d! o* EBanks last raised mortgage rates on June 9, when the 5-year bond yield was at 2.68%.$ E; Z( {* w& \+ G
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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."
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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."
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' q* e. N6 W; D7 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.1 b; ?# O5 Y6 A" z2 _7 L
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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. * P2 f+ H, s% l& |# y
( w" ]/ G3 i7 W3 @' |" ]: K! uYou'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.( \2 N4 v2 G8 C
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楼主: 郭森房贷
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发表于 2009-6-24 17:04
