Wednesday, March 17, 2010

lower Fixed Rates Available

Wow! What an interesting few weeks. The 5 yr bond yield shot up almost overnight last week, yet the fixed rates remained steady. Are the banks hedging bets against a higher bond yield or are the banks really sitting on huge cash reserves?

The past two days we have seen a slight drop in the 5 year bond yield. That said, we do in fact know that the banks are eager to lend and as a result, they are becoming more aggressive with their interest rate pricing. The spread, the difference between the fixed rate and the corresponding bond yield, is at an all-time never seen before low of 1.14%; WOW! This is great news for consumers.

Here are a few of today's great rates.

3.79% 5 yr 120 day rate hold
3.69% 5 yr 30 day quick close

Prime - .50% 30 day quick close
Prime - .40% 120 day rate hold

Zero down financing is still available!

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