 鲜花( 65)  鸡蛋( 0)
|
楼主 |
发表于 2009-7-18 08:28
|
显示全部楼层
ZT - TMG - Will 5-Year Mortgage Rates Fall Further?2 p/ q" e2 d }7 Y0 g& c; f
8 Z% w. P9 ? A( A- _! I. c! qBanks last raised mortgage rates on June 9, when the 5-year bond yield was at 2.68%.
) W) {+ B, N6 Y* C
' [6 v) l* s9 L/ i* g& ISince then, the 5-year yield (which guides fixed mortgage pricing) has fallen to 2.44%, but bank rates have not budged.
( N# g1 A( z' R$ L; r0 S; h/ @; I: x/ _4 y! C+ D
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."
4 _9 s4 ]+ E" s4 F# m. \4 T5 [3 u
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."
6 T4 N4 h$ f; |
! f6 Q0 k9 ^$ q* yThe 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.
" t$ K: l: p% L" G) z ?& P7 ~6 H& S- o" ?) Z. ^0 v
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 $478 over five years, assuming a 25-year amortization and typical fixed rates.$ o6 y x4 q6 o; n; [; x$ L; R
/ n: g8 X$ @! H5 C
But remember, trying to time bond and mortgage rates is financially hazardous. While you're waiting, rates can move the wrong way-quickly.
) T2 E1 C* w4 y# P. Z
4 @1 z" G8 Q% z- o8 AYou'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.; P3 o7 g7 F+ W2 W9 K7 _8 M
@2 P0 e) r! b0 ~/ V$ }: [# G. @) c- q
www.happymortgages.com |
|
楼主: 郭森房贷
狗仔卡
显身卡
发表于 2009-6-24 17:04
