Experts polled by Bankrate are divided about where rates will go before the year is out.
The largest share of respondents to the poll — 47 percent — said they expect rates to remain the same in the coming week. Meanwhile, 40 percent of respondents said rates would rise and 13 percent said they would fall.
Where experts see mortgage rates going next week
“Rates will stay the same. With the holidays upon us, I think rates will remain on a sideways trend,” said Jennifer Kouchis, senior vice president of real estate lending at VyStar Credit Union in Jacksonville, Florida. “My immediate guess is that rates will continue to ignore market indicators and will hold pretty firm until year-end with minimum movement expected. The stimulus news was released, the Fed meeting is behind us, COVID-19 cases are still making a resurgence and although there is positive vaccine news, it won’t be available to everyone for several months. For now, we’re all holding on to see how things will play out in 2021.”
Ken Johnson a real estate economist at Florida Atlantic University, agreed. “There should be no change this week in Treasury yields as the year winds down, and we can expect mortgage rates to remain unchanged,” he said.
Those who said rates will rise mostly said any uptick will be attributable to action in Washington.
“Up,” said Greg McBride, Bankrate’s chief financial analyst. “The long overdue passage of stimulus will give a slight, and brief, bump to rates.”