mortgage
Mortgage Rate Trend Index
Will rates rise or remain relatively unchanged? Experts and Bankrate analysts provide their insights.
This week (Dec. 3 - Dec. 9) the experts say: Look for rising rates. This week, a majority of the panelists believe mortgage rates will rise over the next 35 to 45 days. Just 7 percent think rates will fall, and the rest believe rates will remain relatively unchanged (plus or minus 2 basis points).
Industry experts and Bankrate commentary
| Experts' comments | Panel |
The daily stochastic tech is overbought and due to correct, meaning lower prices and higher yields. The weekly stochastic tech is confused, having done a midlevel upcross. In short, the data is equivocal and I am a bit surprised that rates have stayed this low for this long. I see no downside potential and only upside. The question is: When?
Dick Lepre, senior loan officer, Residential Pacific Mortgage - SF, San Francisco | 
up |
The malls are empty and so are calls for higher mortgage rates.
Dan Green, TheMortgageReports.com, Waterstone Mortgage, Cincinnati | 
down |
Interest rates got a nice little nudge lower last week with the Dubai debt crisis. Continued not-so-positive economic reports continue to be released, allowing for mortgage interest rates to remain at their all-time lows. While this is likely to continue for the near term, do not grow complacent and expect them to be at this level forever. Whenever we test new lows, the market is very volatile. Even if you are not buying right now, consult with your local mortgage professional to see if some of the enhanced refinance programs will work for you. If you are getting ready to build, now would be a great time to lock in your long term interest rate, as rates will likely be higher when your home is finished.
David Kuiper, mortgage planner, First Place Bank, Holland, Mich. | 
unchanged |
The 10-year Treasury is trading at 3.28 percent today, and as far as traders are concerned, we are at the end of the year so don't expect much movement in rates. While rates dropped a bit on Monday it was not inflation that moved them, but a feeling that we are not going to see much of a growth rate for the U.S. in the near future. Now that the stimulus has seemingly run its course markets are expecting a bit of a down trend until the real economy picks up.
Mitch Ohlbaum, loan officer, Bank of America, Los Angeles |
unchanged |
Rates have significantly declined in a short period (at 4.89 percent, rates are approximately 0.29 percent below 90-day moving average), raising the question: Does this short-term rate decline have legs or has it expired? Without debating the direction of rates, there is a level at which you need to stand back and simply ask how low can they go, and beyond that level who cares? With rates this low, a further decline of 0.5 percent is a gamble, as opposed to a 0.5 percent increase which has a better than average chance. Lock or float? It's a simple decision.
Cameron Findlay, chief economist, LendingTree.com, Charlotte, N.C. |
up |
As reported by Freddie Mac last week, rates across the board were at either yearly or all-time lows. Just as Santa comes and goes in the blink of an eye, expect that the rates we have now will not be here either. Rates will also face increased head winds as the Fed has already exercised over 80 percent of their $1.25 trillion program. Lock now.
Jim Sahnger, mortgage Consultant, Palm Beach Financial Network, Stuart, Fla. |
up |
I'm anticipating a slight jump in rates from their current lows. Either way, December is a smart time to lock your rate and get your files submitted before we run into new industry regulations and changes on Jan. 1. Thirty-day interest rate locks next year may not matter much when it takes 60 days to close transactions as a result of bottlenecks in underwriting due to new policy and procedures from Washington.
Mark Madsen, mortgage consultant, Raintree Mortgage, Las Vegas |
up |
| Bankrate's analysts | Panel |
Expect a slight bump off the record lows as Dubai World fades from the headlines and investors unwind the safe haven trade.
Greg McBride, senior financial analyst, Bankrate.com |
up |
Mortgage rates can't set a record low every week.
Holden Lewis, senior reporter, Bankrate.com |
up |
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.