Subprime Blogger

Your Mortgage News Source

Mortgage Rates Could Be Very Interesting This Week

Posted on | June 15, 2009 | 2 Comments

Please make sure to use Subprime Blogger for your mortgage rate predictions.  We also over some interesting articles on how you can get the low mortgage rates you desire.

Mortgage rates are definitely headed for a very interesting week as volatility has greatly increased in rates over the last three weeks.  It has been the exact opposite of the stock market; as the volatility of the stock market has returned to moderate levels, the volatility of mortgage rates has skyrocketed.  That is sure to continue as the 10 year treasury rate has seen a strong pullback from 4%.  This is likely going to cause average mortgage rates to pull back, but who really knows how much.

I truly hope that we see some stabilization in rates because these unusual moves are making it hard for both the lenders and the borrowers.  As a borrower going into a loan office, you really have no idea what rate you are going to get because rates could have moved as much as .75 in ONE day as they did a few weeks ago.  The same is true for the lenders.  When customers are coming in hoping to get a specific rate, lenders are not able to give a solid quote as rates will have greatly once the mortgage application process has begun.  For more on this, check out Mr. Mortgage’s article.

Ultimately, no one really knows where rates are headed, but it is likely to be a bumpy ride this week.  Watching the 10 year treasury rate can give us some prediction on where mortgage rates might go, but as I have said in the recent past, current mortgage rates and the 10 year have not trended in the same strong correlation as history suggests.  I think as we get deeper into the summer we will see this correlation tighten as the 10 year and mortgage rates will follow either other.

Category: 10 year treasury rate, average mortgage rates
Tags:

Comments

2 Responses to “Mortgage Rates Could Be Very Interesting This Week”

  1. » Subprime Blogger / Mortgage Rates Could Be Very Interesting This Week » Subprime Mortgage Refinance
    June 15th, 2009 @ 8:03 am

    [...] news by admin « Subprime Blogger / Home Loan Modification – Will It Help You? Research Recap » [...]

  2. Mortgage online » Blog Archive » Subprime Blogger / Mortgage Rates Could Be Very Interesting This Week
    June 15th, 2009 @ 3:42 pm

    [...] here to read the rest: Subprime Blogger / Mortgage Rates Could Be Very Interesting This Week This entry was posted on Monday, June 15th, 2009 at 5:51 am and is filed under [...]

Leave a Reply





    • Subprime Blogger is Digg proof thanks to caching by WP Super Cache!