Mortgage Rate Trends Predicting Low Mortgage Rates? [mortgagecalculator-tips.blogspot.com]
mmibrokers.com Mortgage rates Currently mortgage rates in the UK start from around the 2.19% mark, there seems to be a current trend where lenders are releasing long term fixed rates over 4 and 5 years from around the 4.99% mark. These long term fixed rates offers borrowers the opportunity to budget towards there monthly payments for a long term period. Weather or not this is a beneficial mortgage rate depends on the borrowers attitude towards risk because there are cheaper mortgage rates available on tracker rates but as always with a tracker the payments can go up if the subsequent Bank of England base rate increases. If for example the borrowers have a cautious attitude towards risk then a long term fixed rate may be the answer. There are currently even longer fixed rates available 4.19% until 2021, that's 10 years locked into a mortgage rate, these long term mortgage rates are not very popular with borrowers curre ntly because of the cheaper tracker mortgage rates available, which tempt clients with the low rates. Other news relating to mortgage rates this week is the fact that the industry is awaiting news of new products from northern rock after being bought out by virgin money, and at the same time we are waiting for a new mortgage rate product launch from the lender Kensington who help borrowers with a less than perfect credit history, which is much needed in the current climate after the problems we have experienced over the past few years, a lot of people are in ...
mortgagecalculator-tips.blogspot.com Currently mortgage rates in the UK. | mmibrokers.com
Many analysts believe that the recent downward mortgage rate trend has been broken. When you look at a long term chart of rates, it is very obvious to see that they have been going down for over two decades. It is hard to compare the early 1980s to any time in recent history as there was hyperinflation in the United States and home loan rates were above 16%. This is highly unlikely to ever happen again, but if the Federal Reserve continues to spend money, we very well may try to test that level.
Mortgage news has continue to deliver the current story of the 10 year treasury rate correlating to the 30 year fixed rate mortgage. If you look at a long term chart, since 1971, you will see that there is a strong relationship between the two. There are very few times in this short history that the two sets of numbers separated in a large way. With this being known, one would think that they would go in tandem either up or down.
Since the beginning of 2009, the 10 year has been in a strong uptrend which has not been the case for overall rates. The mortgage rates trend continued down.At the end of May and the beginning of June that all changed as mortgage rates jumped enormously to coincide with the 10 year treasury rate. Over the last week we have seen the 10 year treasury rate pull back quite a bit, so one would think that rates would do the same. This would mean that the overall downward trend in mortgage rates remains intact. Only time will tell.
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