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Mortgage Rate Trends – Will the Interest Rate Downtrend be Broken?

Posted on | July 19, 2009 | 1 Comment

Please use Subprime Blogger to keep up-to-date with current mortgage rate trends.  There are also several articles to help you obtain low mortgage rates.

I have often stated that long term mortgage rate trends are down and have been since 1982 when average mortgage rates peaked around 17%.  Since then, over almost three decades, mortgage rates have worked their way all the way down to around 5%.  There were a few months that interest rates were below 5% but it looks like approximately 5% has been the bottom so far.  With that being said, it seems very possible that the current bottoming process is a rolling over of the long term chart.  If you look at rates from 2002 until now, they have moved sideways for the most part.

While there are been moves out of the range trend, for the most part daily mortgage rates have been between 5% and 6% over the last seven years.  There has not been a strong move lower to make the long term downtrend remain intact.  This makes me think that it is very possible that we are currently seeing the bottoming process for mortgage rates.  I have said for quite some time that interest rates will move higher in the near future, we just do not know when.

At one point we are going to see an inflationary period and overall interest rates are going to take part in this by moving higher.  For those of you who want to combat this move, make sure to pick the best inflation investments available.  With that being said, when will this inflation that is going to push mortgage rates higher occur?  That is a very good question that very few people can give a answer with complete confidence.  If the treasury rate yield continues to move higher as it has since January, we could be seeing the beginning of that period as we speak.

One thing is for certain, mortgage rates are not going to remain below 5% for too much longer.  If you have the opportunity to refinance below 5%, I would strongly suggest it.  With the direction of the 10 year yield, things are not looking great for lower mortgage rates in the near future.

Please check out the daily Subprime Blogger rant; today I let Mr. Bernanke know how I feel:

Oh, so you are planning now for the “restoration of fiscal balance?”  I call bullshit!  The more statements that you make, the more I realize that you are full of shit Mr. Bernanke.  Printing money in an attempt to spend our way out of this recession has not worked in the past so why do you think it will in the future?

Read the entire article here: Ben Bernanke, Please let the Markets Set Interest Rates

Category: mortgage rate trends
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Comments

One Response to “Mortgage Rate Trends – Will the Interest Rate Downtrend be Broken?”

  1. Subprime Blogger / Mortgage Rate Trends Pointing Towards Lower Rates
    July 19th, 2009 @ 7:59 pm

    [...] – July 19th – The most up-to-date mortgage rate trends article is available here: Mortgage Rate Trends – Will the Interest Rate Downtrend Be Broken? For almost seven years mortgage rates have been moving in a sideways direction between 5% and 6% so [...]

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