mortgage

Where are mortgage rates headed?

Panel prediction
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Will rates rise or remain relatively unchanged? Experts and Bankrate analysts provide their insights.

This week (Nov. 25 - Dec. 3) the experts say: Rates will rise. This week, 80 percent of the panelists believe mortgage rates will rise over the next 35 to 45 days. The rest are evenly balanced among those who think rates will fall, and those who believe rates will remain relatively unchanged (plus or minus 2 basis points).

Industry experts and Bankrate commentary
Experts' commentsPanel
The upward pressure on commodities, the ongoing debt struggles within the government, the pressure on the dollar and the government's continued borrowings are all going to make it more difficult and more expensive to get a mortgage.
Tom Vanderwell, StraightTalkAboutMortgages.com, Fifth Third Bank, Grand Rapids, Mich.
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The daily tech should soon (just after Thanksgiving) finish its bullish cycle and then all of the techs will be bearish and rates will likely move up 0.25 percent. I must issue my regular disclaimer that we are still in a nonmarket situation where the Fed can move rates to wherever it wants.
Dick Lepre, senior loan officer, Residential Pacific Mortgage - SF, San Francisco
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Rates can only go one way from here. I'm not panicking right now, but it is an incredible time to lock in right now. Whenever we approach new lows, bond traders tend to cash in their gains, preventing any further pricing improvement. With economic reports moderating slightly and (the) end of the government intervention that's keeping rates low near, rates will begin to rise. And if there is any hint of inflation or a positive economic trend of any sort, rates will rise dramatically and without warning.
David Kuiper, mortgage planner, First Place Bank, Holland, Mich.
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Mortgage rates, like everything else, are cheap this holiday season.
Dan Green, TheMortgageReports.com, Waterstone Mortgage, Cincinnati
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Rates are incredible right now and, while they should be higher, the amount of supply in mortgage-backed securities is currently being absorbed by what the Fed is buying, even in a reduced role. However, with these low rates, expect that rates will come off these low levels as we move into the first quarter.
Jim Sahnger, mortgage consultant, Palm Beach Financial Network, Stuart, Fla.
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Bankrate's analystsPanel
As the Fed further winds down its purchases of mortgage-backed securities, rates will rise.
Holden Lewis, senior reporter, Bankrate.com, North Palm Beach, Fla.
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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.

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