Tucson AZ Home Loan Info

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March 4 '09: Refinance When Mortgage Interest Rates Are Headed Back Up? Why?

The US 10 year bond is an indicator of mortgage interest trends in the United States.  Geithner's Treasury department will sell 60 Billion of 10 year bonds this week, but the US Dollar isn't the only game in town.  Investors are starting to believe that the sky isn't actually falling, and they have other options.

10 Year bonds in other currency denominations are looking for buyers too.  The yields in these two daily charts from Bloomberg.com show that Geithner and company will have to pay more to attract those buyers, or they won't be able to sell the bonds.

What does that mean to you and me?

At the same time that your home value is falling, interest rates are rising again.  That's a problem for individuals who are focused on the promise of cheap money in the mortgage markets.  Eroding home values are the greater danger to your ability to refinance your present loan

I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.
Mike Jones (Tucson Mortgage Company, LLC): Loan Officer in Tucson, Pima County, Arizona
Think of me as your Tucson mortgage expert.


Call me if I can help you with a purchase or refi mortgage;
(520) 349-9090

charts courtesy Bloomberg.com

Comment balloon 5 commentsMike Jones • March 04 2009 07:09AM

Comments

Mike, this is an interesting point and one that you do not hear people talk about.

Posted by Don Rogers, Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes (Keller Williams Realty Chesterfield) over 11 years ago

MORNING MIKE!  One of my clients is struggling with this issue right now - especially with all the talk of low interest rates - and not understanding why he can't find "what he is hearing about on the news."  -- Gabrielle

Posted by Gabrielle Kamahele Rhind, Broker/Owner (KGC Properties LLC, Tucson Property Management & Real Estate) over 11 years ago

ToulaRosebrock.com - DianeTurton.netHi Mike:

Great information.

I have a client struggling with this as well...

Posted by Toula Rosebrock, Broker/Sales Associate, Realtor, Lacey Township, (Diane Turton, Realtors, Forked River, NJ) over 11 years ago

I have been talking to buyers about the double affect of rising interest rates and prices that might start moving back up for sometime. Has that day arrived?

Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) over 11 years ago

Terry,

I think it's here.

Toula,

Have you shoveled out from under all that snow? 

Gabrielle,

Send the client to www.Bloomberg.com and have him click on Markets>Bond.

Don,

Thanks for being the first to comment!  See you over on your blog.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) over 11 years ago

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