Each week, Bankrate surveys experts in the mortgage field to see where they believe mortgage interest rates are headed.
This week (Dec. 13-20), 30 percent of the panelists believe mortgage rates will rise over the next week or so; 30 percent think rates will fall; and 40 percent believe rates will remain relatively unchanged (plus or minus 2 basis points).
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Read the comments and rate predictions of mortgage experts and Bankrate analysts below.
Mortgage loan officer, Grande Financial, Maumee, Ohio
Rates will move up.
President and Chief Economist, Naroff Economics, Holland, Pennsylvania
Growth is strong.
Nancy Vanden Houton, CFA
Senior research analyst, Stone & McCarthy Research Associates, New York
Rates will be higher.
Robert A. Brusca
Chief Economist, Fact and Opinion Economics, New York
Rates will be lower.
Senior vice president of LoanLogics, Trevose, Pennsylvania
Fed tightens on Wednesday Dec 13. Headwinds to GDP, labor expansion, and inflation are intensifying, which keeps downward pressure on mortgage rates. Think about “Undun” by The Guess Who released in 1969: “Who’s come undun; jobs didn’t know what they were headed for; And when they found what jobs were headed for; It was too late.”
Greg McBride, CFA
Senior vice president and chief financial analyst, Bankrate.com
Inflation is low and the Fed continues to raise short-term interest rates. This should keep a lid on mortgage rates despite the ongoing balance sheet unwinding and the stepped up economic growth estimates.
Senior loan officer, RPM Mortgage, San Francisco
The techs are mixed and offer no clear signal as to where Treasury yields and mortgage rates are going in the next week.
Senior loan officer, AMC Lending Group, Irvine, California
Still the same story on the bond market. The channel of 2.27 percent – 2.45 percent has stuck around with us for some time no matter what the economic data has shown. Core CPI and PCE inflation has gone nowhere but down this year, but oil prices have been strong so they’re offsetting each other. GDP growth looks to be the best in this economic cycle but as long as we are pushing double the jobs growth needed for population wage inflation should still be tamed for ages 55 and over.
Vice president of capital markets, CMG Financial, San Ramon, California
Today it is expected that the Fed will announce its final rate hike of the year and the final under current Fed President Yellen. With the Fed’s openness about this last move, markets are expected to remain relatively calm for the remaining weeks of 2017. The tax bill is still on the table and the debt “ceiling” was only given a temporary extension; both of these topics could lead to larger than normal rate movement in the first part of 2018.
Mortgage planner, Schaffer Mortgage, Palm Beach Gardens, Florida
The Fed met today and voted to raise the Fed Fund by a .25 percent. In their statement they recognize that inflation remains in check and in some cases has been declining. Based on the statement, other than saying previously “I told you we were going to raise rates,” there doesn’t seem to a real basis for having done so. That said, rates should remain unchanged to slightly improved over the next week.
About the Bankrate.com Rate Trend Index
Bankrate’s panel of experts is comprised of economists, mortgage bankers, mortgage brokers and other industry experts who provide residential first mortgages to consumers. Results from Bankrate.com’s Mortgage Rate Trend Index are released each Thursday.