Home > Mortgages > Mortgage Interest Rates Spiked Higher Than Normal

Mortgage interest rates spiked higher yesterday May 28 2009 as a result of secondary mortgage-backed bonds climbing much higher than expected. Investors viewed this uneasy and increase in risks. This news certainly affected the long-term 15 and 30-year mortgage rates hike.

If you are in the market of purchasing a home or refinancing your home, you may want to pay more attention as to when you might want to lock in your rates. If you are not sure as to when you should, read my article on my personal opinion as to when you might want to lock in your rates.

Although the rates have been higher when compared to the past few weeks, it is still considered lower than what it is just at the beginning of the year (January 2009). Certainly still in historical lows.

The Federal government had been purchasing these home loan backed securities in the past 2 months with hopes of keeping the mortgage interest rates low enough to spark interests in more home sales. 

Check with your lender to see how this may (or may not) affect your rates. Each borrower's credit worthiness is entirely different hence I hesitate to publish any mortgage rates here. I am also not a lender/ mortgage professional. It is best to let the professionals do their jobs.

Also, note not to get too jumpy with this news. Things **might fall back down or they **might not. Just be aware of your situation and how it might affect your budget if you had planned for a tight budget to begin with.

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