mortgage

Mortgage Rate Trend Index

 
 

Will rates go up, down or remain unchanged?

Greg McBrideGreg McBride
CFA, Senior financial analyst, Bankrate.com
After a notable rise this week, mortgage rates will settle in, particularly with worries brewing about Irish banks.
David KuiperDavid Kuiper
Mortgage planner, First Place Bank, Holland, Mich.
After the bloodbath in bonds last week, and mortgage interest rates rising, pricing seems to have stabilized in light of recent weak economic reports. The Fed's QE2 (providing additional liquidity to the markets) provided a knee-jerk reaction in the bond market, with fears of inflation (the archenemy of bonds) facing the bond market. The recent housing starts, PPI and CPI figures show no short-term inflation, and have calmed the markets somewhat, and we've recovered a little bit of the ground that was lost over the last week. I don't think we'll see the record-low rates that we've seen recently; but interest rates are still incredible, and now is not the time to be a "fence-sitter" or to hope for better times.
Dick LepreDick Lepre
Senior loan officer, RPM Mortgage, San Francisco
Talk this week is of why QE2 is having precisely the opposite effect of what was desired. Discussion has centered on: 1. The "buy on rumor, sell on news" syndrome, and 2. The notion that the economy is doing better.
The problem with almost all analyses is that the bigger picture is being missed. What is probably happening is that anyone with significant wealth sees that it is more rewarding to invest capital in China and India, where there is significant potential for economic growth and the reward that goes with such investments.
If this is the case, then the problem is much worse than what is being discussed. Investors are saying, "U.S. Treasury, 10-year yields at 2.5 percent to 3 percent, stick it. I am investing in China." The general impression that the U.S. government really does not have an answer to its fiscal woes creates additional doubt regarding the U.S. economy. QE2 is being perceived with thinking akin to, "If you guys have to try this, then you are in worse shape than we thought."
Steven LevittSteven Levitt
Vice president of mortgage lending, Guaranteed Rate, Chicago
With the volatility in the market, investors will be bargain hunting for stocks as well as bonds, keeping rates unchanged for the short term.
Chris SipeChris Sipe
Senior loan officer, Embrace Home Loans, Frederick, Md.
Disappointment in the Fed's recent actions, continued economic turmoil in the European Union and surprisingly positive economic data here have made the markets extremely volatile. There is good reason to believe we have seen the best rates ever, but I expect rates to stabilize and remain at these levels while the market seeks longer-term direction.
John WalshJohn Walsh
President, Total Mortgage Services, Milford, Conn.
Rates should remain steady in the coming week.
Tommy XintarisTommy Xintaris
Senior mortgage consultant, Houston
Since Nov. 5, the FNMA (Fannie Mae), 30-year, 3.5 percent coupon has lost more than 200 basis points. QE2, as expected, has seriously put a hurtin' on mortgage rates. However, in the week to come, I am expecting rates to gain a little back as the market is in an oversold position.
 
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