David KuiperMortgage planner, First Place Bank, Holland, Mich.
We've seen a run-up in interest rates over the past few weeks. Further positive economic reports are pointing to the economy recovering, which is bad news for mortgage bonds. As investors and traders look to lock in their gains and move out of bonds and into equities, rates have been slowly rising. I think rates will remain at or near the levels they currently are at in the near term. While rates are about 1 percent higher than the all-time lows we saw last fall, in the big picture of life, rates are incredible and homeownership is still very affordable. Consult with your local mortgage professional to see how you can take advantage of this market.
Dick LepreSenior loan officer, RPM Mortgage, San Francisco
The damage from the techs should be finished by Feb. 11 and we will then see a bullish weekly tech appear. The worst from this technical bear cycle has passed.
Jeff TuffordMortgage consultant, Monarch Consulting, Grand Blanc, Mich.
This last week turned out to be not good for rates in spite of somewhat poorer-than-expected economic data. Inflation concerns seem to be the driving force here and it can be expected considering the Federal Reserve Board desires an inflation rate that is considerably higher than we see today. These fears will probably continue for some time making the short term direction hard to predict as the economic recovery is, in reality, not here yet. Typically, you see a bounceback when rates go on a tear like they have lately. Isaac Newton's famous quote, "What goes up, must come down," is often employed in these situations. But after rates have been as low as they have for as long as they have, the opposite can also be employed: "What goes down, must come up." We are bound to see this happen at some point this year, but for the short term, I am inclined to think we may have a mini roller coaster coming and in the next week, rates will ultimately remain unchanged.