Current Mortgage Rates Will Rise: First-Time Home Buyers Act Now

Current Mortgage Rates Slowly Increasing

So far this week we have seen current mortgage interest rates slowly increasing. The good news is today the current mortgage rates have had a mid-day adjustment for the better after treading lower for most of the morning and early afternoon. . While current mortgage interest rates have slowly increased this week they are still below 4.99% for a 30 year fixed, 5/1 arms are still in the 3's and 10/1 arm's ate still available in the low 4 % range.

Regardless of which loan term you feel is the right one for your needs, these current mortgage rates which are available during this time are still considered extremely low compared to historical levels. If you believe the lead analyst from Moody, Steven Hess' opinion that if the US government doesn't "get the deficit down in the next 3-4 years to a sustainable level, then the rating will be in jeopardy. The U.S. Governments current rating if that of AAA, not only has the U.S. Government sustain this triple A rating since 1917. If the rating went down then the Government will have to increase the yield or interest rates on the bonds it sells. If the interest rates of U.S bonds went higher, current mortgage rates will also increase in order to remain competitive for investors who purchase this.

It was also announced today the Labor Department stated the initial jobless applications rose by 11,000 to 531,000 in the week ended Oct. 17, this is up from a revised 520,000 the previous week. That was higher than economists' expectations of 515,000 new claims. It was also announced the number of people receiving unemployment benefits fell by 98,000 which is probably more to do with their benefits running out than from finding gainful employment.

First-Time Home Buyer Tax Credit Expiring

As you are probably already aware of the U.S governments 1st time home buyers tax credit is expiring at the end of the day November 30, 2009 so if you do qualify for the tax credit and you do not have an offer in or an accepted contract on a home, chances are slim, although not impossible, that you will be able to close in time to be eligible for the tax credit or hard cold cash in your pocket via the U/S. Government.

Current Mortgage Rates Won't Remain Low Forever

While it is impatiently anticipated the government will extend this tax credit till June 2010, there as been no confirmation it will happen. If it does happen, there is no guarantee current mortgage rates will remain at the historically low level we are fortunately experiencing today. We can hope, we can pray we can keep our fingers crossed and wish....

If you have any question that you would like to get answered by our expert mortgage brokers, please email us or call us at 1-877-868-2503. See our Current Mortgage Rates.