Citibank’s (NYSE: C) interest rates on 30-year fixed-rate owner-occupied home mortgages has remained consistent at 4.8% as fears of rising interest rates remain.
Citi’s home mortgage rates have remained below 5% for all of 2010. Most mortgage lenders are continuing to report rates below 5%, but some are getting dangerously close to offering best-rates of 5% or higher. Citibank’s 30-year fixed-rate loan rate is currently sitting at 4.8%, which has been consistent for the last few weeks.
The Federal Reserve is set to ends its subsidy of the mortgage market by halting a program in which the quasi-government organization is purchasing mortgage-backed securities from the private market. Some analysts believe that this move will increase interest rates that borrowers are paying on loans by as much as 100 to 125 basis points. This means that borrowers could quickly be paying interest rates at around 6% when the Federal Reserve’s support of the mortgage market comes to an end.
Many consumers have taken advantage of the historically low interest rates that banks are offering on mortgages by refinancing their homes.
Most consumer advocates recommend that borrowers with higher-interest rate mortgages refinance before the Federal Reserve’s support of the mortgage market comes to an end. If you have an interest rate on your mortgage of above 6% and have good credit, it will be well worth it for you to consider refinancing. You could easily save $100 a month or more off your monthly mortgage payment.
