Greg McBrideCFA, Senior financial analyst, Bankrate.com
If job growth meets expectations, mortgage rates will move higher.
Michael BeckerMortgage banker, Happy Mortgage, Lutherville, Md.
This week, the direction of mortgage rates will be dependent upon the nonfarm payroll report due this Friday. Strong job growth would push mortgage rates higher. Given the strong ADP employment report that was just released, I'm betting mortgage rates will rise in the coming week.
Kevin BreelandGeneral manager, Residential Mortgage of South Carolina, Mount Pleasant, S.C.
As economic reports continue to come, there are signs -- although not through employment -- that production is picking up slowly, consumers are spending more money, gas prices continue to rise, and general confidence is starting to improve. What happens with this fear, whether real or mental, the fear of inflation looms. Rates will rise slowly now, but they will rise over the next seven days.
Cameron FindlayChief economist, LendingTree.com, Charlotte, N.C.
The tighter mortgage spreads (between Fannie Mae current coupon and 10-year Treasury yields), which have essentially been buffering mortgage rates from moving higher, will mean mortgage rates will be more highly correlated to the direction of Treasuries. Since Dec. 1, that's what has helped keep mortgage rates to borrowers relatively low despite the borrower rate increase of more than 0.3 percent in the same time frame. So while rates are slightly higher, they could in theory be a lot higher -- by an additional 0.2 percent relative to the changes we saw in 10-year debt.
Rebecca R. MadejMortgage consultant, Cunningham & Company Mortgage Bankers, Charlotte, N.C.
A smattering of positive economic reports will fuel hopefulness in a 2011 recovery. Investors will move from bonds to stocks, and rates will rise.
Bob MoultonPresident, Americana Mortgage Group, Manhasset, N.Y.
Rates are on the rise.
Mitch OhlbaumVice president of business development, Mortgage Capital Associates, Los Angeles
The 10-year is currently at 3.44 percent and seems to remain stubbornly high with inflation expectations running in the 2.3 percent range. Even with unemployment still at 9.7 percent and no significant hiring on the horizon, the market believes that the worst is over and we are heading into positive territory for job growth and earnings. With this in mind, money is heading into equities, driving up stock prices and forcing yields on the Treasuries up despite what the Fed wants to see.
Jim SahngerMortgage consultant, Palm Beach Financial Network, Stuart, Fla.
Rates could rise a bit in the short term.