Mortgage Rate Trend Index Unchanged: Sept. 18, 2014
Will rates go up, down or remain unchanged?
Holden LewisAssistant managing editor, Bankrate.com
When the Fed began cutting back on its purchases of mortgages, I thought mortgage rates would rise. After all, the point of the bond-purchase program was to put a ceiling on interest rates. But mortgage borrowing has slowed so much that the Fed's role in setting mortgage rates isn't as outsized as it used to be. When mortgage rates start to rise, it might be in a series of jumps, rather than a gradual incline. I don't think we'll see one of those big jumps just yet. Not this week.
Logan MohtashamiSenior loan officer, AMC Lending Group, Irvine, California
The 10-year Treasury is at 2.61 percent, which is higher than last week. The market has sent yields higher due to the Fed talk. We have seen a 31 basis-point move now from the point where Ukraine bombed a Russian convoy. We could see yields get to 2.91 percent by the end of the year if this trend continues, but for this week look for some consolidation on the 10-year Treasury. If we have a bad winter storm, that may put a lid on yields rising in the winter.
Shashank ShekharCEO, Arcus Lending Inc., San Jose, California
Weekly initial jobless claims report may have some impact on the rates. But overall with seven consecutive days of rate increase, I see the rates stabilizing this week.