 鲜花( 65)  鸡蛋( 0)
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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?' a. V- k( P: s
# ^) q6 i1 m+ [( vBanks last raised mortgage rates on June 9, when the 5-year bond yield was at 2.68%.
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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." , U, c+ x5 f, N) d
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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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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.* N0 d. A! B9 i- x" z& |& w
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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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But remember, trying to time bond and mortgage rates is financially hazardous. While you're waiting, rates can move the wrong way-quickly. ' s; t" ?4 p: w9 |' ^
1 E) @1 v j( z3 iYou'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.8 b' l% N" g, d' a
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* ~9 y( T/ W' ]* N# V1 M c! u" Cwww.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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