Mortgage Rate Trend Index
Will rates go up, down or remain unchanged?
Polyana da CostaMortgage reporter, Bankrate.com
Investors are nervous about the debt ceiling situation. So far, that has not impacted rates as much because they are waiting to see what happens. But if it doesn't look like Congress is close to a solution by next week, we'll probably see a quick spike.
Holden LewisAssistant managing editor, Bankrate.com
The closer we get to default, the more likely we'll see a spike in mortgage rates.
Greg McBride, CFASenior financial analyst, Bankrate.com
Worries of a U.S. debt downgrade are now emerging as a threat to rates, even if default is averted.
Barry HabibCEO, Mortgage Market Guide, Holmdel, N.J.
Higher, as debt ceiling deal rallies stocks.
John WalshPresident, Total Mortgage Services, Milford, Conn.
Mortgage rates will likely head higher regardless of the decision in Washington over the debt ceiling increase and deficit cutting. Of course, it depends on what deal is reached:
- Increase in the debt ceiling with a small cut in government spending: Modestly higher interest rates as bond investors lose confidence in our leaders' willingness to solve our serious financial problems.
- Increase in the debt ceiling with a significant cut in government spending: Mortgage rates that are more stable -- but begin to rise as the economy improves
- The unthinkable -- no deal at all: Sharply higher rates for the long-term foreseeable future.