Mortgage Rate Trend Index March 26
Will rates rise or remain relatively unchanged? Experts and Bankrate analysts provide their insights.
This week (March 26 - April 1) the experts say: The likeliest outcome: Higher rates. This week, half of the panelists believe mortgage rates will rise over the next 35 to 45 days. The other half are split equally among those who think rates will fall, and those who believe they will remain relatively unchanged (plus or minus 2 basis points).
Industry experts and Bankrate commentary
The dirty little secret is that some banksters are making exceptional profit margins on their current batch of new loan fundings. Money is inexpensive and there is a near monopoly because incredibly few lenders survived. There is zero motivation to drop rates further because the loan lines are long, borrowers have to act quickly because their property values continue to drop and the government put no conditions on the banksters markups of the plentiful government money.
Jeff Lazerson, president, Mortgage Grader, Laguna Niguel, Calif.
A little higher. Historically, each time we reached out and touched significant lows in rates we got a push back. Combined with the flood of paper coming from Washington and around the world it will be difficult to maintain these levels. Bernanke and company will work to keep them in check but we will still feel the effects of rate pressure. Don't be greedy and don't expect 4.00-4.50 percent.
Jim Sahnger, mortgage consultant, Palm Beach Financial Network, Stuart, Fla.
Despite last week's massive rally in the bond market, mortgage backed securities soon returned to the range we've seen them trading in for months now. Those who were well positioned to take advantage of the temporary dip in rates can be congratulated. However, it is impossible to time to the market. Interest rates remain very attractive and should be taken advantage of today when possible. What the Fed announcement did last week is extend the time period that rates will remain low. Please do not allow the talking heads on TV to convince you that this means rates will go down even further. Market conditions and capacity issues will prevent this.
David Kuiper, mortgage planner, First Place Bank, Holland, Mich.
The summer mortgage rate run-up is underway.
Dan Green, mortgage planner, Mobium Mortgage, author of TheMortgageReports.com, Cincinnati
Conforming rates will move to wherever the Fed decides to move them to. It appears that there are not enough investors interested in mortgage paper at this time so there is no real market. It is also the case that the banks which are the primary feeders for FHLMC & FNMA are making fatter margins rather than passing along to borrowers what could be lower rates. That said, there is so much demand for refinancing that no one should wait. Borrowers contemplating refinancing need to apply now.
Dick Lepre, senior loan officer, Residential Pacific Mortgage, San Francisco
"Better than expected" seems to be the common theme with the recent economic news. I'm preparing for a small bump in rates from last week's lows as banks try to make up for blown locks and lost files.
Mark Madsen, mortgage consultant, Raintree Mortgage, Las Vegas
Mortgage rates will drift lower due to Fed purchases of Treasuries and mortgage-backed bonds.
Greg McBride, senior financial analyst, Bankrate.com
Dude, when the mortgage hits a record low, it's a pretty safe bet that it will be higher than that record low a few weeks hence. I mean, duh!
Holden Lewis, senior reporter, Bankrate.com
About the Bankrate.com Rate Trend Index
Bankrate.com surveys 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 comprises banks, thrifts and credit unions that directly offer FDIC-insured certificates of deposit to the end consumer. For the mortgage index, the panel comprises mortgage bankers, mortgage brokers and other industry experts who provide residential first mortgages to consumers. Results from Bankrate.com's CD Rate Trend Index will be released monthly. Results from Bankrate.com's Mortgage Rate Trend Index will be released each Thursday.