Will rates go up, down or remain unchanged?

 
Panel Prediction
Up Down Unchanged
41% 18% 41%
 

Will rates rise or remain relatively unchanged? Experts and Bankrate analysts predict where mortgage rates are headed over the next week.
This week (April 14-April 20), 41 percent of the panelists believe mortgage rates will rise over the next week or so, 18 percent think rates will fall, and 41 percent believe rates will remain relatively unchanged (plus or minus 2 basis points).

Click on the three tabs above to read the comments and rate predictions of mortgage experts and Bankrate analysts.
Bankrate.com surveys experts in the banking and mortgage fields to see if they believe certificate of deposit and mortgage rates will rise, fall or remain relatively unchanged. For the deposit index, the panel comprises banks, thrifts and credit unions that directly offer FDIC-insured certificates of deposit to the end consumer. For the mortgage index, the panel comprises mortgage bankers, mortgage brokers and other industry experts who provide residential first mortgages to consumers. Results from Bankrate.com’s CD Rate Trend Index will be released monthly. Results from Bankrate.com’s Mortgage Rate Trend Index will be released each Thursday.

 
 

Will rates go up, down or remain unchanged?

Greg McBride
Greg McBride
CFA, senior financial analyst, Bankrate.com
If inflation figures spook the markets, mortgage rates will move up.
Dan Green
Dan Green
Waterstone Mortgage, author of TheMortgageReports.com, Cincinnati
As gas prices go, so go mortgage rates. Lock ’em in.
Barry Habib
Barry Habib
CEO, Mortgage Market Guide, Holmdel, N.J.
Higher off CPI (Consumer Price Index).
John Walsh
John Walsh
President, Total Mortgage Services, Milford, Conn.
After today, rates are likely to increase in the coming week.
 
 

Will rates go up, down or remain unchanged?

Holden Lewis
Holden Lewis
Assistant managing editor, Bankrate.com
The core consumer price index will be lower than expected when it’s released Friday, and that could put a damper on mortgage rates. I doubt that rising fuel and food prices bring higher mortgage rates. A lot of folks disagree with me about that, but I have yet to see proof of a connection between $4 gasoline and 5.25 percent mortgages. If anything, modestly rising fuel prices weaken demand for other products and services, holding down overall inflation. With unemployment at 8.8 percent, it’s perverse to worry about prices.
Polyana da Costa
Polyana da Costa
Mortgage reporter, Bankrate.com 
The stock market declined, making bonds more attractive to investors, and that normally results in lower mortgage interest rates. Plus, rates have risen three weeks in a row. For a change, we’ll see a small dip, but it will be short-lived.
Joe Nunziata
Joe Nunziata
Chairman and co-CEO, FBC Mortgage, Orlando, Fla.
We believe mortgage rates will remain steady with a slight trend downward during the next week. (Recently) we saw a rally in the mortgage bond markets on the heels of the news out of Japan that that their nuclear crisis threat level was raised to a 7, the highest level possible. This has spurred a wave of funds into what the world markets typically brand as safe haven investments, the U.S. bond market. However, other items we expect to affect mortgage bond markets are the U.S. Treasury’s auction of three-, 10- and 30-year notes this week. The results of these auctions could definitely move the mortgage bond markets in either direction. There is broader talk about inflationary pressures on the U.S. economy, which is certainly not good news for mortgage rates. As such, we feel that in the near term mortgage rates may improve, but stand to face some heavy headwinds should the auctions not provide good results this week.
 
 

Will rates go up, down or remain unchanged?

Michael Becker
Michael Becker
Mortgage banker, Happy Mortgage, Lutherville, Md.
The recent rise in mortgage rates has slowed. The rise in food and energy prices is beginning to cut into consumers’ discretionary spending. As the extraordinary amount of fiscal and monetary stimulus comes to an end, markets seem to be worried about future growth. This will put a lid on rates and keep them from rising in the coming week. Mortgage rates hold steady in the coming week.
Kevin Breeland
Kevin Breeland
General manager, Residential Mortgage of South Carolina, Mount Pleasant, S.C.
Concerns over inflation, disaster in Japan, potential cease-fire in Libya, the budget deficit and the upcoming battle on the new budget has the MBS market working like a roller coaster. These large daily movements have become almost common. With wide swings come uncertainties, with uncertainties come continued wide swings. Locking right now is to just take what you have today and be happy. However, if you have the stomach for it, the rates should be unchanged for the next seven days. Don’t forget your Dramamine.
David Kuiper
David Kuiper
Mortgage planner, First Place Bank, Holland, Mich.
The tug of war between global unrest/uncertainty and encouraging domestic economic news continues, and while we see intraday volatility, there hasn’t been much net movement in the bond market. Interest rates remain very favorable, and I continue to hold to a locking bias at this time. We all know (or should know!) that the pressure of pending inflation continues to build, and when this comes to the forefront, we’ll see rates move swiftly and dramatically, and the days of low rates will be over. Consult with your local mortgage professional today to see how you can take advantage of this historic opportunity.
Dick Lepre
Dick Lepre
Senior loan officer, RPM Mortgage, San Francisco
Confusing times. The techs will be bullish next week, but THE issue is that Congress is at least trying to acknowledge that we have serious fiscal problems. Toss in uncertainty in the EU and what has happened in Japan, and what I see is a major increase in unpredictability.
Jim Sahnger
Jim Sahnger
Mortgage consultant, Palm Beach Financial Network, Stuart, Fla.
Rates continue to be volatile on a day-to-day basis but likely will remain flat overall over the next week. Continued best advice, though, is to lock early in the application process, particularly if you are stretching things budget- and qualification-wise.
Bob Moulton
Bob Moulton
President, Americana Mortgage Group, Manhasset, N.Y.
Rates should remain flat.