Current Mortgage Rate
PRODUCT +/- Rate Last week
30 year fixed Graph Icon Arrow 4.09% 4.16%
15 year fixed Graph Icon Arrow 3.25% 3.30%
5/1 ARM Graph Icon Arrow 3.28% 3.36%

 Rate disclaimer

PRODUCT +/- Rate Last week
30 year fixed refi Graph Icon Arrow 4.09% 4.17%
15 year fixed refi Graph Icon Arrow 3.25% 3.34%
10 year fixed refi Graph Icon Arrow 3.15% 3.18%
PRODUCT +/- Rate Last week
60 month used car loan Graph Icon Arrow 3.20% 3.20%
48 month used car loan Graph Icon Arrow 3.18% 3.19%
60 month new car loan Graph Icon Arrow 3.44% 3.44%
PRODUCT +/- Yield Last week
6 Month CD Graph Icon Arrow 0.75% 0.71%
1 Year CD Graph Icon Arrow 1.24% 1.24%
2 Year CD Graph Icon Arrow 1.41% 1.41%
MMA and SAVINGS 0.58%
$10k MMA 0.57%
Interest Checking 0.43%
Compare Mortgage Rates
Type of Loan:
Home Description:
Your Credit Profile:

Mortgage Brokers & Lenders Directory

You can search our directory or Mortage Brokers & Lenders and get a current quote on 30 year fixed mortgage rates as well as current mortgage interest rate for other loan programs.

Mortgage Brokers:

Refinance Mortgage or Buy Now Before Interest Rates Increase

Written By:
January 04, 2013 at 6:56 PM

Mortgage Calculator Green Button

Home owners who intend to complete a mortgage refinance soon and people looking to purchase should move quickly to take advantage of low interest rates.

This is the message put forth by two Federal Reserve by economists Andreas Fuster and David Lucca, who work at the New York regional bank. The communication contradicts the dynamics of the relationship between mortgage rates and mortgage bonds.

Usually, mortgage interest rates have a direct correlation with mortgage bonds. For example, if the interest rates paid on bonds falls lower, a decrease in mortgage interest rates usually follows.

However, while the price of mortgage bonds have gone down, the interest rates for home mortgage have not dropped--current mired in the vicinity of 3.5% According to the economists, they calculate that mortgage interest rates should be closer to 2.6% as based on the level of bond prices.

Interest Rates Won’t Go Lower

According to the blog post by the two Fed researchers, they suggest the possibility that the average 30-year fixed rate mortgage will decrease to as low as 3 %, but only if some major policy changes take place.

Even if significant policies changes do occur, it does not mean that mortgage interest rates will fall to 3% or lower.

Fuster and Lucca writes about the “noise” in the industry about why rates won’t go lower. The rubbings include concerns about the new regulations initiated by the Dodd-Frank Act and financial reforms for international banks as mandated by Basel III.

The researchers acknowledge that higher reserve requirements for banks may have had a negative effect on mortgage servicing companies. Mortgage servicers contribute to the banks bottom line realized from home mortgage servicing segment, but it should not exert upward pressure on mortgage interest rates.

Fewer Mortgage Brokers

Fuster and Lucca concludes that the primary reason for mortgage interest rates being higher than what should be has to do with fewer mortgage brokers. The housing market collapsed and the financial crisis of late 2008 culled the number of mortgage brokers. Fewer mortgage brokers, according to the economists, means less competition among mortgage lenders to bring down mortgage interest rates.

Another reason for mortgage rates failing to go lower has to do with the consolidation that has taken place in the home mortgage industry since the financial problems of 2008. JP Morgan Chase and Wells Fargo completed approximately half of all home mortgage refinance applications.

However, the Internet-based mortgage shopping site MortgageMarvel conduct an informal comparison of mortgage interest rates and found that although JP Morgan Chase and Wells Fargo handle about 50% of the mortgage refinance market, on average, their mortgage interest rates was competitive with most other banks. Wells Fargo’s rates, according to MortgageMarvel, was even lower than the average community bank mortgage lender

Mortgage Market Reform Needed

The consensus among mortgage industry economist and consumer groups is that the industry still is in need of reform. Particularly, a decision has to be made about the role of the government-sponsored enterprise Fannie Mae and Freddie Mac. These governments –owned institutions have supplanted private mortgage lenders and dominate the mortgage market.

The space vacated by private banking has been filled by Real Estate Investment Trusts (REIT) that specializes in mortgage financing. These entities benefit from high home mortgage interest rates and have no incentive to see homeowners receive lower rates.

Move Now to Refinance Mortgage and Buy a Home

Most economists agree that mortgage interest rates will climb higher in 2013. Homeowners who plan to refinance their mortgages and potential home buyers need to understand that once the upward momentum in mortgage interest rates takes off, they will lose the advantages that lower mortgage rates provide. These benefits include the ability to buy more home and lower monthly mortgage payments.





More About Mortgage Refinance
Please sign-in with Facebook.

Mortgage Refinance by State
Alabama Mortgage Refinance Illinois Mortgage Refinance Montana Mortgage Refinance Rhode Island Mortgage Refinance
Alaska Mortgage Refinance Indiana Mortgage Refinance Nebraska Mortgage Refinance South Carolina Mortgage Refinance
Arizona Mortgage Refinance Iowa Mortgage Refinance Nevada Mortgage Refinance South Dakota Mortgage Refinance
Arkansas Mortgage Refinance Kansas Mortgage Refinance New Hampshire Mortgage Refinance Tennessee Mortgage Refinance
California Mortgage Refinance Kentucky Mortgage Refinance New Jersey Mortgage Refinance Texas Mortgage Refinance
Colorado Mortgage Refinance Louisiana Mortgage Refinance New Mexico Mortgage Refinance Utah Mortgage Refinance
Connecticut Mortgage Refinance Maine Mortgage Refinance New York Mortgage Refinance Vermont Mortgage Refinance
Delaware Mortgage Refinance Maryland Mortgage Refinance North Carolina Mortgage Refinance Virginia Mortgage Refinance
District of Columbia Mortgage Refinance Massachusetts Mortgage Refinance North Dakota Mortgage Refinance Washington Mortgage Refinance
Florida Mortgage Refinance Michigan Mortgage Refinance Ohio Mortgage Refinance West Virginia Mortgage Refinance
Georgia Mortgage Refinance Minnesota Mortgage Refinance Oklahoma Mortgage Refinance Wisconsin Mortgage Refinance
Hawaii Mortgage Refinance Mississippi Mortgage Refinance Oregon Mortgage Refinance Wyoming Mortgage Refinance
Idaho Mortgage Refinance Missouri Mortgage Refinance Pennsylvania Mortgage Refinance