Posted on | December 27, 2009 | no Comments

Wells Fargo refinance mortgage rates have been very close to all-time lows for much of the second half of 2009. that changed quickly at the beginning of December as fixed mortgage interest rates hit a bottom at 4.5% and have moved up ever since. if you were hoping to time the bottom of mortgage rates then you might be one month too late. since the beginning of December rates have moved from 4.5% to above 5%.

If you are looking to get a fixed low refinance rate then there still are options available to you but rates are not nearly as low as they were a month ago. The 30 year fixed mortgage rate is currently right around 5% and there is a chance that it could continue to move higher in January and February. The 10 year treasury rate yield and the 30 year fixed-rate mortgage have had a strong correlation since 1971 when mortgage data was first collected by Freddie Mac.

When the 10 year treasury rate yield starts to move higher it is often the case that mortgage interest rates follow. since the beginning of December the 10 year treasury rate yield has went from 3.2% all the way up to 3.8%. The strong move higher has caused mortgage interest rates to react and we are likely to see rates above 5% until the 10 year yield starts to drop.

There is a very good chance that we could see a cooling off period for the 10 year yield at this move higher has been a straight shot up. As anyone who has researched financial markets knows that nothing can go up forever. A move like this is likely to cause the 10 year yield to pull back significantly in the very near future.

You will want to have your mortgage application ready when this pullback happens because this might be your last opportunity to refinance at a fixed rate below 5%. Do not be surprised if this pullback happens next week or the first week of January. With the amount of applications coming in around the new year this would be all too fitting to have mortgage interest rates below 5% at this time.

Author: Alan Lake

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Wells Fargo Refinance Mortgage Rates – Fixed Refinance Rates Move Up