Best rates of the year! (now gone, gone, gone)


As we start off the business year of 2009, the one thing that stays the same, is the same thing that stayed the same, or, wait, is it, the only thing that stays the same is the thing that changes, or, is the thing . . . whatever the saying is.  New year – same story.  Volatility in the mortgage backed securities market remains even in this new year.

So, where are interest rates headed for 2009?  Well, I am not sure that anyone can answer that with great confidence accurately, but the media and the general public are certainly anticipating lower mortgage rates in the near future.  And, while that may be a possibility in the coming days, weeks or months (as the billions of dollars in mortgage assets are purchased directly by the US Treasury), for now, the best interest rates for the year have come . . . and gone.

That’s right.  This morning, the markets opened and investors published one set of rate sheets (a 30 year fixed rate loan around 5%, or so) and as the mortgage backed securities markets lost ground during the trading day, most lenders re-priced their available rates — increasing rates across the board by 0.125%.

My advice to my clients remains the same — if the numbers to refinance make sense for your situation (based on monthly savings, months to recoup closing costs in savings and the time you are expecting to stay in your home), then you should refinance.  Will you lock-in your rate at the absolute bottom of the market?  More than likely not.  Just as the stock market fluctuates (and has fluctuated wildly) so does (and will) the mortgage backed securities market.  So, if you can lock in close to the bottom — and at a rate and term that makes sense for you — then you have saved money and made a good decision.  If you wait . . . well, we’ll have to wait and see how that works out.

One thing I can tell you about interest rates, I wouldn’t recommend “waiting until next year for rates to go lower.” 


Jeffrey Pinkerton is a Mortgage Consultant and President of Hillside Lending, LLC and writer for “the Mortgage Blog.”  Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing.  For more information about available programs and interest rates, please visit


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