I am a homeowner. My wife and I bought our house in August 2008. I really did not think too much about interest rates and whether or not my timing was good. As a complete beginner, I did not think anything of trying to get the best rate. I just wanted to get a mortgage payment that I could handle.
As a budding technical analyst, I am a bit ashamed of myself. I just didn’t know where to look for charts on mortgage rates. I also did not know what the rates were based upon. This is why I consider myself a student – I am always learning something.
I was directed toward Zillow.com and to the 10 year government bonds. Zillow tracks not only home prices but it also has a place to track interest rates. I was told that following the yield of 10 year bonds will give you an indication of where the mortgage rates are likely to go.
So here is the snapshot for today:
Right now I see mortgage rates falling and I see the 10 year yield gaining strength.
We could be seeing a reverse head-and-shoulders forming in the yield of the 10 year bond. Now, it’s important to note that when the yield increases, the rate drops. When the yield drops, the rate increases.
If my theory is correct on the 10 year yield, then we will begin to see an increase in mortgage rates.
Now could be the time to refinance.
Time to get rate shopping!
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