Each week, Bankrate surveys experts in the mortgage field to see where they believe mortgage interest rates are headed.
This week (Feb. 21-27), 42 percent of the panelists believe mortgage rates will rise over the next week or so; 8 percent think rates will fall; and 50 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.
Robert A. Brusca
Fact and Opinion Economics, New York
Rates will be higher.
Mortgage loan officer,
Grande Financial, Maumee, Ohio
Rates will move up.
Branch manager, New American Funding, Silverdale, Washington
Mortgage rates are really at a crossroads. My old high school football coach, Carlton Cooper, always said, “When in doubt, throw the out.” In other words, the markets have not really been playing in our favor. There is a good chance, based on the technical signals, that rates may get worse. So, before they go higher, flee to safety and take the “Out Route” by locking in now.
Greg McBride, CFA
Senior vice president and chief financial analyst, Bankrate.com
If the Fed meeting minutes spook investors, this will push yields higher.
President and Chief Economist, Naroff Economics, Holland, Pennsylvania
Rates will be higher.
Senior vice president of LoanLogics, Trevose, Pennsylvania
Here’s a song parody that became the first single to top the charts in the U.S. posthumously. Sitting on the locks of the day; Watchin’ the screen, scroll away. Sittin’ on the locks of the day; Markin’ time. Technically interest rates should go higher, but the global equity markets still present ugly technical pictures worldwide. Provided the dollar remains stable to strong, expect lower rates soon.
Branch manager, Sierra Pacific Mortgage, White Marsh, Maryland
hankfully mortgage rates have seemed to stabilize over the last few days. Given the large amount of debt the U.S. Treasury is selling this week, this is a welcomed situation. Whether they stay here or go higher will depend on what is in the Fed minutes. Should the Fed hint at increasing their number of rate hikes, we could see mortgage rates move higher. I think the minutes won’t show this and that rates will be flat in the coming week.
Founding director and executive-in-residence of the O’Neil Center for Global Markets & Freedom SMU Cox School of Business & former chief economist, Dallas Federal Reserve Bank, Dallas
There will be no change.
Northpointe Bank, Holland, Michigan
Things seem to have calmed down just a bit in the world of mortgage interest rates, and they seem to be looking for a place to settle after several weeks of being on the rise. It would be prudent at this time to lock into an interest rate if that option is available to you to secure a “sure thing” and ensure protection from any further volatility. Contact your local mortgage professional to see what this might look like for you, whether you’re looking to buy, build or refinance.
Senior loan officer,
RPM Mortgage, San Francisco
It is difficult to tell short-term what the techs say for rates, but what is sure is that the daily, weekly and monthly techs are extremely oversold. Any unexpected event bad for the economy event will cause a very large rally and lower yields and rates.
Senior loan officer, AMC Lending Group, Irvine, California
Key line to remember on the 10-year yield is 2.92 percent. I know this doesn’t get talked about much from people, but for me this is the last line of defense before we make the mother of all tests at 3.03 percent. So far, we haven’t been able to close above 2.92 percent and get follow-through action. Inflation data core is looking strong, but be mindful core CPI and PCE haven’t been above 2 percent together since 2012. Context is key with inflation.
Mortgage planner, Schaffer Mortgage, Palm Beach Gardens, Florida
Rates have been increasing since mid-September, battling an incredibly vibrant stock market. The stock market is up roughly 11 to 13 percent while yields are up on the 10-year Treasury over 30 percent and mortgage rates are up roughly 15 percent. I think we’ll take a breather over the next week. That said, don’t float your rate lock. Tail winds look like things will continue to get a bit worse before we get better.
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.