Mortgage Rate Trend Index


Will rates go up, down or remain unchanged?

Michael BeckerMichael Becker
Mortgage banker, Happy Mortgage, Lutherville, Md.
Mortgage rates have moderated a bit since spiking last week. I expect that trend to continue for the next couple of days as the bond market seems to be oversold. Take advantage of any drop in rates to lock in, as it appears the long-term trend for rates is higher. Mortgage rates will drop slightly in the coming week.
Mitch OhlbaumMitch Ohlbaum
Vice president of business development, Mortgage Capital Associates, Los Angeles
The 10-year is trading at 3.6 percent, which is down from the last few weeks. Retail sales and some weaker than expected earnings has helped drag rates down over the last week. Inflation remains mostly unchanged, but as usual, we are seeing much higher energy, commodity and food prices, which translate to less spending on other items down the road. The good news for Treasuries and mortgage-backed securities is that foreign investors had quite an appetite for Treasuries last year ($707 billion) while in 2009 they were sellers! The renewed interest from foreigners in mortgage-backed securities should help keep rates down and maybe drive them down slightly as the world looks for a safe decent yield.

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