Houston Mortgage Refinance: Mortgage refinance rates at 5-month high this week

Houston Mortgage Refinance: Mortgage refinance rates at 5-month high this week

Mortgage rates surged to a five-month high this week, tracking a jump in bond yields after President Obama and congressional Republicans agreed to a plan that, if approved, would extend tax cuts for two years. http://www.washingtonpost.com/wp-dyn/content/article/2010/12/10/AR2010121002115.html

The average rate on a 15-year fixed loan rose to 3.96 percent from 3.81 percent. Rates on five-year adjustable mortgages averaged 3.6 percent, up from 3.49 percent. Rates on one-year adjustable-rate loans edged up to 3.27 percent from 3.25 percent.

Houston:  713-589-2244     Austin:  512-996-8194     Dallas:  972-325-2120

Rates are rebounding after falling for seven months. Investors are selling Treasury bonds in anticipation of an extension of tax cuts and unemployment benefits that could boost the economy next year. Investors are also dumping bonds because they think budget deficits will grow over the long term because of the deal. The sell-off is raising the yield on Treasury bonds, and mortgage rates tend to track those yields.

The surge could slow refinancings and further hamper the housing market. But rising borrowing costs from record-low levels might spur some prospective home buyers to make purchases to lock in low rates, said Paul Dales, an economist at Capital Economics Ltd. “Once people see this might actually be the bottom, they go for it,” Dales said in a telephone interview from Toronto.

Interested in taking advantage of Houston mortgage rates before the projected increase? We’re a local Houston mortgage lender that can offer you the best mortgage rates with the lowest closing costs! Give us a call today!

Houston:  713-589-2244     Austin:  512-996-8194     Dallas:  972-325-2120

 If you’d like more information regarding a Texas refinance or a home equity loan please call us at 512-996-8194

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