mortgage

Mortgage Rate Trend Index

 

Will rates go up, down or remain unchanged?

Holden LewisHolden Lewis
Senior reporter, Bankrate.com
Tension in Korea plus fear of debt in the eurozone drive money to our shores, making loans cheaper.
Cameron FindlayCameron Findlay
Chief economist, LendingTree.com, Charlotte, N.C.
Rates will go lower, but only slightly. Mortgage spreads have already pushed out to 93 basis points from their March 10, 2010, low of 59 basis points. This spread went as high as 238 basis points in March 2008. The market distraction from North Korea and the continuing euro concerns will continue to push investors toward the safety of dollar-denominated bonds. Expect bond prices to continue to push higher (rates lower), but limited to the downside by the fact that spreads are widening. Said another way, Treasury rates will decline faster than mortgage rates.
 
advertisement

Show Bankrate's community sharing policy

Connect with us