mortgage

Mortgage Rate Trend Index

 
 

Will rates go up, down or remain unchanged?

Greg McBrideGreg McBride
CFA, Senior financial analyst, Bankrate.com
Since the QE2 announcement in early November, mortgage rates have done nothing but move higher. What can Ben Bernanke say in next week's FOMC announcement to reverse the course, because right now nothing is working?
Michael BeckerMichael Becker
Mortgage banker, Happy Mortgage, Lutherville, Md.
The announcement of an agreement on the extension of the Bush tax cuts has been a catalyst for rapidly rising mortgage rates. It seems as if the bond vigilantes do not like the additional $900 billion in debt that will occur as a result of the compromise between President Barack Obama and Congressional Republicans. I think it will take an exceedingly bad economic report or another sovereign debt crisis to reverse the tide of rising rates. I really don't see anything like that happening in the coming week, and because of this, I think mortgage rates will rise in the coming week.
Kevin BreelandKevin Breeland
General manager, Residential Mortgage of South Carolina, Mount Pleasant, S.C.
The bond market has been competing with the largest roller coaster in the world, and it is winning. It was a wild ride in mortgage-backed securities last week, and this week has started that way again. Winding the year, higher bond yields abroad will put additional pressures on the MBS market. Today, the 10-year yield is above 3 percent (and) pointing toward more unsettled movement in the bond market. For these reasons, I believe the rates will increase over the next seven days. I would not float anything; I would lock in as soon as possible.
Dan GreenDan Green
Waterstone Mortgage, author of TheMortgageReports.com, Cincinnati
The major damage is done. This week, look for minor price hikes instead.
David KuiperDavid Kuiper
Mortgage planner, First Place Bank, Holland, Mich.
Mortgage-backed securities and the bond market seem to be in a free fall right now, and rates have risen suddenly and dramatically, as we knew they would. We just didn't know when! While it appears that the record-low levels seen in recent months are a thing of the past, in the big picture, rates are still incredible and represent a great opportunity for many to still take advantage of. This may be the wake-up call we needed to shake us out of our complacency. Remember, positive news in the economy results in money flowing out of the bond market, causing interest rates to rise. Most data being released currently, while not all positive, is at least "less negative." Consult with your local mortgage professional today to see how you can take advantage now, before pricing erodes further.
Dick LepreDick Lepre
Senior loan officer, RPM Mortgage, San Francisco
With rates having shot up, the forecast at present is that they are likely to increase a bit more. We are about to see an end to the secular bullish monthly and the weekly and daily techs are bearish (lower prices, higher yields). All of the potentially bullish patterns were quashed by the announcement Dec. 7 that a political compromise was reached to extend the tax cuts. We are likely to be stuck at these levels or above until past year's end.
Brian PeartBrian Peart
President, Nexus Financial, Atlanta
Rates are shooting up!
Jim SahngerJim Sahnger
Mortgage consultant, Palm Beach Financial Network, Stuart, Fla.
Rates in the last few months have been the best ever. While they are off their lows, they are still quite a bit lower than historic averages. Get busy if you need to submit an application though, as it appears the trend in rates is not your friend.
John WalshJohn Walsh
President, Total Mortgage Services, Milford, Conn.
I believe rates will increase in the coming week.
 
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