| |
Will rates rise or remain relatively unchanged? Experts and Bankrate analysts provide their insights.
 Alert
me when the RTI is updated
This
week (June 25 - July 1) the experts say: Rates just might move down.
 |
| June 25 - July 1 |
|
|
This week, almost half of the panelists believe mortgage rates will fall over the next 35 to 45 days. About one-quarter think rates will rise, and the rest believe rates will remain relatively unchanged (plus or minus 2 basis points).
Panel:
Up:
23% |
Down:
46% |
Unchanged:
31% |
|
|
|
|
| Experts' comments and Bankrate
analysts |
|
|
 Experts' comments |
Panel |
The weekly tech has been oversold and it upcrossed. This means higher prices and lower yields for Treasuries. This may give up a couple of months of lower yields, but the longer-term tech is still bearish, and investors are still concerned about inflation, and they are still concerned about mortgage-backed securities.
Dick Lepre, senior loan officer, Residential Pacific Mortgage, San Francisco
|
down |
Government intervention eases mortgage rates.
Dan Green, TheMortgageReports.com, Mobium Mortgage, Cincinnati
|
down |
I'm advising my loan officers and clients to lock as soon as they can or float with extreme caution. While fears of inflation appear to be in control, the overwhelming supply of paper still leads me to believe that rates will have to increase in order to encourage investment.
Mark Madsen, mortgage consultant, Raintree Mortgage, Las Vegas
|
up |
As soon as rates rose a few weeks ago, purchase and refinance mortgage momentum dropped. There are a million homes waiting in the wings of foreclosure that can only hope to be absorbed through the enticement of lower rates.
Jeff Lazerson, president, Mortgage Grader, Laguna Niguel, Calif.
|
down |
|
It looks as if the stock and bond markets have gotten over their fear of impending inflation, and that should be good for rates in the coming weeks. But it looks like the Treasury will be issuing a large amount of new Treasuries every other week to finance our huge deficit. It will be hard for bonds to rally and rates to come down much, given the large supply coming. So while I think rates will be trending down, I see a lot of wild swings in rates in the coming weeks. I think Greg McBride said it best last week when he advised to lock on the dips.
Michael Becker, mortgage consultant, Green Pastures Mortgage & Finance, Lutherville, Md.
|
down |
Mortgage rates have moved a long way in a short period of time. We'll probably take a breather in the mid-5s for a while.
Mike Larson, interest rate and real estate analyst, MoneyandMarkets.com, Jupiter, Fla.
|
unchanged |
I'm inclined to believe that rates will rise a bit from here. The statement from the FOMC stated that inflation appears to be in check, which should keep rates in check. However, with more paper coming from Washington in the form of Treasury auctions, it would seem rates would be inclined to drift higher. Volatility should continue day to day, so exercise caution when locking.
Jim Sahnger, mortgage consultant, Palm Beach Financial Network, Stuart, Fla.
|
up |
|
Bankrate's analysts |
Panel |
Mortgage rates don't normally hinge on Fed meetings, but things haven't been normal for a while. If the Fed doesn't toughen the tone on inflation, rates could rise. Tougher talk from the Fed would even push rates a bit lower. Let's hope it is the latter.
Greg McBride, CFA, senior financial analyst, Bankrate.com |
up |
A sluggish economy and no near-term threat of inflation should keep mortgage rates about where they are now, or push them toward springtime levels.
Holden Lewis, senior reporter, Bankrate.com |
down |
|
|
About the Bankrate.com Rate Trend Index
|
This week: July 30 - Aug. 5
