 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?
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Banks 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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' K3 W1 I$ M6 k V+ X/ c& I1 UBMO 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." # T1 }; u( Z) j* g) X7 l9 @* I( i' K
3 r$ P+ r- w" I8 `) W5 m0 {9 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."0 F" o% p: w+ j# n0 X; k; b" r
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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.3 s1 U1 _+ p; J P
$ _$ e8 p6 x/ }( O# hIf 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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& t! }. ~1 l5 {' NBut remember, trying to time bond and mortgage rates is financially hazardous. While you're waiting, rates can move the wrong way-quickly.
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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." D& S5 F k3 {! R8 K! S) N* V F
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6 C: J- h- `9 V6 A- G5 n' y1 hwww.happymortgages.com |
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楼主: 郭森房贷
狗仔卡
发表于 2009-6-24 17:04
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