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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?; u8 r9 }* n! f) ~
3 [2 x& Z/ E5 S2 iBanks last raised mortgage rates on June 9, when the 5-year bond yield was at 2.68%.) _0 V, [5 ~5 ]+ P# y. W- v
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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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# {* a0 W. K' f5 TBMO 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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, F$ b5 |6 {* @. OHe 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."$ c4 Y6 g( ?) l9 }) F/ i
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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.% g: j/ a/ C# i9 d. U- ^; S
: r- Q$ R5 W' X4 X- q- a' `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 $478 over five years, assuming a 25-year amortization and typical fixed rates.
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But remember, trying to time bond and mortgage rates is financially hazardous. While you're waiting, rates can move the wrong way-quickly.
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' {& s8 p) d/ [; @You're usually better served by focusing on factors that can dwarf a 0.10% rate savings, like finding a mortgage with the optimal term and just the right amount of flexibility (pre-payment options, openness, readvanceability, etc.). Too much flexibility is a waste, and too little can cost you in the long-run.+ x/ s2 `! V8 q; _9 F7 w9 r$ Z
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/ O2 V' D4 O# w# lwww.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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