Interest rates a make fast and significant move lower. The move lower has moved us to the bottom of the current trading range. Only 2 short months ago we were at the top of the current range and in danger of a significant move higher. This move lower has opened up a window of opportunity for those people who were feeling as though they had missed the bottom in rates. Now is a great time to lock in that 30 yr fixed mortgage and gain the peace of mind knowing your payment will never change.
The chart below shows a one year look at the 10 yr treasury. You can easily see the large increase in rates that occurred last year. This is followed by our current trading range. Just as touching the top of the range put rates in danger of breaking out above the range so touching the bottom of the range is a chance to break out to lower rates. Still a move back up into the range is the most likely scenario.
The current financial consensus is that rates will move higher. If those prognosticators prove correct now is the time to remove any rate risk that you may have. Whether it be an adjustable rate 1st or an equity line, refinancing into a fixed rate mortgage could save tens of thousands of dollars.