mortgage

Mortgage Rate Trend Index

 
 

Will rates go up, down or remain unchanged?

Greg McBrideGreg McBride, CFA
Senior financial analyst, Bankrate.com
The weak economy has brought mortgage rates to record lows, despite increased credit spreads since the downgrade. As long as worries about the economy dominate, mortgage rates will remain very low.
Michael BeckerMichael Becker
Mortgage banker, WCS Funding Group, Lutherville, Md.
Uncertainty regarding the U.S. economy, the world economy and the European debt crisis trumped the downgrade of America's debt over the last week. For now, U.S. Treasuries are still considered a safe haven and because of that, investors are moving into U.S. Treasuries, driving their yields and mortgage rates down. We are now very close to the all-time lows of last year on mortgage rates. It's very hard to predict that they will fall further from here, but uncertainty will keep mortgage rates at their current low levels in the coming week.
Dick LepreDick Lepre
Senior loan officer, RPM Mortgage, San Francisco
With massive uncertainty and volatility, it is a bit difficult to forecast where rates are going in the near future (seven to 10) days. I will opine that we will soon see another wave of lack of confidence, which will cause equity selling and Treasury buying. I see the 10-year yield falling to 2.1 percent if and when this happens. Anyone considering refinancing their mortgage should get the paperwork started. My method is to get everything but the appraisal done and then order an appraisal after locking the rate. This keeps the speculative cost to the borrower down to the price of a credit report and situates the folks who do this to be at the front of the line when we see a bottom.
Bob MoultonBob Moulton
President, Americana Mortgage Group, Manhasset, N.Y.
Rates should remain flat.
Mitch OhlbaumMitch Ohlbaum
Vice president of business development, Mortgage Capital Associates, Los Angeles
The 10-year is trading at 2.1 percent, which is nearly at the two-year low from December 2008. This is uncharted territory and not only did no one expect us to have lower rates at this point in time but certainly not to take the course we have taken to arrive here. The Fed has announced they expect to keep rates extraordinarily low through 2013, also not anything we expected as we were seeing growth in the first half of the year. We are in for a bumpy and unpredictable ride, but enjoy the low rates.
 
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