Experts’ comments
Panel
We’ve all overreacted at some point in our lives; traders are no different. The reversing of their bets will edge mortgage rates lower.
Dan Green, mortgage planner, Mobium Mortgage, Chicago

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Several layers of technical resistance lie ahead of us to make any convincing and long term break lower in rates short term. A blockbuster economic event will be needed, like a significant increase in unemployment to help break through what lies ahead, and I don’t see that on the horizon.
Jim Sahnger, mortgage consultant, Palm Beach Financial Network, Stuart, Fla.

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The bond market bounce we’ve seen recently should soon run out of gas. Look for bond prices to fall and mortgage rates to rise.
Mike Larson, interest rate and real estate analyst, MoneyandMarkets.com, Palm Beach Gardens, Fla.

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The weekly tech is about to upcross. That means higher prices and lower yields but … the daily tech is about to downcross. This should mean about two weeks of going nowhere and then a rally when the weekly and daily are both bullish. The general picture as to why the long-term bull market failed and we had all that selling a few weeks ago still remains, for my purposes, unexplained and that is of concern to me.
Dick Lepre, senior loan officer, Residential Pacific Mortgage, San Francisco

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The 10-year closed at 5.01 percent today and dipped below 5 percent, which is big news considering where everyone said we were heading. The interesting thing is that mortgages (as I said last week) are not following as quickly or closely as we would like. If the Treasuries stay down and we get confidence in this range we should see mortgages follow. One important note; in the last 10 of 11 years, rates have gone down in the second half of the year.
Mitch Ohlbaum, president, Legend Mortgage, Los Angeles

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With bond prices virtually unflinched by the better-than-expected Institute of Supply Management numbers, it seems as though bond traders are waiting for the economic shoe to drop. Don’t look for much earth-shattering news this week with the holiday and light economic calender. May experience volatility on light trading.
Dan Dowling, president, United Capital Mortgage Corp., Altamonte Springs, Fla.

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While new federal guidelines for banks are intended to protect consumers, they are actually going to have unintended consequences of hurting existing marginal borrowers. When their payments adjust and they can’t afford their homes anymore, there will be nowhere to find an affordable payment.
Jeff Lazerson, president, Mortgage Grader, Laguna Niguel, Calif.

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Bankrate’s analysts
Panel
Until there is a fundamental change in the economic or Fed outlook, mortgage rates will drift sideways. Bernanke’s upcoming congressional testimony later this month will be key.
Greg McBride, senior financial analyst, Bankrate.com

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Rates will bounce back to around 6.75 percent.
Holden Lewis, senior reporter, Bankrate.com

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