mortgage

Mortgage Rate Trend Index

 
 

Will rates go up, down or remain unchanged?

Michael BeckerMichael Becker
Mortgage banker, Happy Mortgage, Lutherville, Md.
Mortgage rates are currently at the lower end of their recent range. I expect mortgage rates to stay low as economic data, like this week's consumer confidence number, continue to show weakness. Interestingly, over the last five weeks, the best day to lock in your rate has been either Tuesday or Wednesday. I will be watching to see if this trend continues.
Kevin BreelandKevin Breeland
General manager, Residential Mortgage of South Carolina, Mount Pleasant, S.C.
We are still in a jobless recovery and the numbers continue to prove that fact. While the stock market and mortgage-backed securities will continue to be up and down based on profit-taking and safe havens, I would bet rates will remain unchanged for the next seven days.
Cameron FindlayCameron Findlay
Chief economist, LendingTree.com, Charlotte, N.C.
At the end of the August, Federal Reserve Chairman Ben Bernanke disclosed the Fed will do "all it can" to rein in prevalent deflation concerns. Since then, rates have risen sharply, then fallen back in some larger-than-desirable magnitudes. This daily rate fluctuation means borrowers need to be cautious of when they lock and should shop the market to ensure they have received a competitive offer.
Chris KarageorgeChris Karageorge
Senior home loan adviser, Universal American Mortgage Company, Wayzata, Minn.
With no "high importance" market reports or meetings taking place this week, the mortgage market should be influenced mostly by stocks. Still, I don't see enough movement to affect rates very much.
David KuiperDavid Kuiper
Mortgage planner, First Place Bank, Holland, Mich.
While there are no positive economic reports being released, we are seeing rates having a difficult time going any lower. That's partially due to technical resistance and partially due to capacity issues, with lenders writing record volumes right now. With a struggling employment picture and weakened consumer confidence, we'll continue to see rates trade in a very narrow (and low) range.
Dick LepreDick Lepre
Senior loan officer, RPM Mortgage, San Francisco
Treasury yields and mortgage rates are scraping bottom. We will soon see (at the beginning of November) the first estimate of third-quarter GDP. GDP is largely driven by consumers and the consumer is in a deleveraging mode and lacking confidence in leadership and the economy in general.
The best metric of consumer spending comes from the Consumer Metrics Institute index. It showed consumer spending decreasing starting this January. "Old school" metrics such as leading economic indicators and consumer confidence are seriously outdated. (The) Consumer Metrics (Institute) measures actual Internet sales and reports with a two- to three-day lag. (The) media reporting that "consumer confidence unexpectedly dropped" is rubbish. It unexpectedly dropped for those who believe the 1930s manufacturing-heavy metric makes sense in 2010.
Mitch OhlbaumMitch Ohlbaum
Vice president of business development, Mortgage Capital Associates, Los Angeles
Rates are still quite low. As I write this, the 10-year Treasury is trading at 2.49 percent as it struggles to stay above the key 2.5 percent level. Unemployment remains stubbornly high while large corporations continue to build their war chests of cash at a spectacular rate. They are spending on IT and equipment but there few new jobs in sight.
The Federal Reserve is focused on lower long-term rates and is again considering buying Treasuries and mortgage-backed securities to accomplish this after being out of the market earlier this year. Inflation/deflation also continues to be on the mind of the Fed.
Jim SahngerJim Sahnger
Mortgage consultant, Palm Beach Financial Network, Stuart, Fla.
Overall, rates should stay in a similar range to what we have seen the past few weeks.
That said, rates can change both during the day, and day to day. In some cases, they change a lot. When you can lock near the low of what your lender has offered the past month, take it.
 
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