Mortgage Rate Trend Index -- Week of June 28

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	Each week, Bankrate.com surveys mortgage experts to gauge the state of mortgage rates over the next 30 to 45 days: Will rates rise, fall or remain relatively unchanged?

This week (June 28 - July 4) the experts say:
"Up" votes are on the upswing. Consider locking in!

PANEL:	Down: 27%	Up: 31%	Unchanged: 42%



In this week's RTI, 42 percent of the respondents said rates will remain relatively unchanged (+/- 2 basis points from where they are now). Just over one-fourth said rates will fall, while 31 percent said they will rise. This week, more survey participants said they think the Federal Reserve Board's rate cuts will get the economy back on track eventually. But others said that will take awhile and that rates will remain flat for now. Graph the trend for mortgages Archive of Rate Trend Index columns

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COMMENTS:
"The yield curve is still correcting. With the Fed cutting rates, we should see the longer-term rates rise slightly."
-- Jason P. Flurry, CFP, Flurry Financial, LLC, Roswell, Ga.
RATE VOTE:Up

"The bottom was reached in March and despite some gyrations in the interim, it's all uphill from here. The economy is about six months from recovery, but the fear of overheating is all it takes to spook the market."
-- Scott Drescher, Prime Lending Inc., Dallas, Texas
RATE VOTE:Up

"In the short term, interest rates will remain near current levels. But the Fed's aggressive rate cuts will stimulate economic activity, meaning higher interest rates toward the end of summer."
-- Philip Schneider, president, Dallas Mortgage Associates, Dallas, Texas
RATE VOTE:Unchanged

• Ready to buy? Save money by using our mortgage rate search tables to find the best deal.

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About the Bankrate.com Rate Trend Index
Bankrate.com surveys more than 100 experts in the banking and mortgage fields to see if they believe certificate of deposit and mortgage rates will rise, fall or remain relatively unchanged. For the deposit index, the panel is comprised of banks, thrifts and credit unions that directly offer FDIC-insured certificates of deposit to the end consumer. For the mortgage index, the panel is comprised of mortgage bankers, mortgage brokers and other industry experts who are actively engaged in providing residential first mortgages to the end consumer. Results from Bankrate.com's CD Rate Trend Index will be released each Wednesday. Results from Bankrate.com's Mortgage Rate Trend Index will be released each Thursday.

BANKRATE'S ANALYSTS:
"The Federal Reserve Board opted for a one-quarter of a percentage point, or 25 basis point, cut rather than a larger 50-point one. That could help send long-term rates a bit lower by prolonging the time it takes for the economy to recover. The recent drop in energy prices helps alleviate inflation concerns too. At the same time, the cumulative effect of Fed cuts, tax cuts and lower energy prices could boost consumer spending and help the economy rebound, pressuring rates higher. For now, I feel these factors will offset each other."
-- Michael D. Larson, mortgage writer, Bankrate.com

RATE VOTE:

"Don't sit and wait for lower mortgage rates. With a sixth rate cut now in the books, plenty of reasons for economic recovery exist. Any sustained evidence of recovery seen over the next 4-8 weeks will push mortgage rates higher."
-- Greg McBride, financial analyst, Bankrate.com
RATE VOTE:Up

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