Tuesday, June 23, 2009
Five Year Rate Rises
Since our last blog, i was able to take some time with my family to England. We had a great trip and was an excellent experience for your kids. Well, in that time we seen the five year mortgage rate rise more then.60%. These increases are due to in my opinion to two factors. One the bond spread did rise increasing the cost of funds. The second is that everyone was refinancing their mortgage's at very low rates, which is costing the banks a lot of money. Even with charging large penalties, the banks were losing interest charges for a lot of mortgages. Rates themselves are still at very historic low levels. variable rate mortgages are currently starting at 2.65% and 3 year terms from 3.45%. Now is still one of the best times i have seen to be having a mortgage.