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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: m% b8 i( |! x
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Banks last raised mortgage rates on June 9, when the 5-year bond yield was at 2.68%.( J! ]2 V9 a4 y* }1 ?" m) j
2 `( w" t! ]" O, R8 t- W6 ]% L5 hSince 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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: k* i; P7 D2 ~. D% n- z1 k2 }9 XHe 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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3 }5 D# M$ i8 LThe 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.4 N$ H# {4 y) U4 t' L2 ~( A
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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 $478 over five years, assuming a 25-year amortization and typical fixed rates.+ |; P1 G2 B" [5 M- t6 U
: a. g5 A/ S3 R7 o$ gBut remember, trying to time bond and mortgage rates is financially hazardous. While you're waiting, rates can move the wrong way-quickly. ; I0 B |4 e3 m+ o/ q( a: X
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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.4 ]5 O. m& X# U, b+ r
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! u2 r1 N' V/ y: Q! Pwww.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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