Subprime Blogger

Your Mortgage News Source

Mortgage Rates Forecast – Interest Rates Settle at 5.2%

Posted on | August 24, 2009 | No Comments

The mortgage rates forecast over the last few months have been very hard to predict.  One week we drop a half a percentage point from 5.5% all the way down to 5% and then the next week we gain it all back.  This seems to be the way 30 year mortgage rates have been acting for the entire month of August.  Making mortgage rate predictions has been nearly impossible as the volatility seems to get a little more excessive each and every week.  With that being said, it looks like average mortgage rates are settling in around 5.2%; that could all change very quickly though.

Home mortgage loan rates have been everywhere between 5.05% and 5.5% in the month of August.  It seems to come at the drop of a hat as well.  The volatility in 30 year fixed mortgage rates has been quite amazing after a month of seemingly no movement.  For the entire month of July we saw home mortgage rates between 5.1% and 5.3%.  Well, that range has greatly expanded during August from 5% to 5.5%.

It seems that each time we see a strong move one way or the other something happens to bounce average interest rates back the other way.  Every time daily mortgage rates get close to 5% the market takes notice and we see a strong move up in the 10 year treasure rate.  When this happens, home loan rates move all the way up to 5.5%.  It is almost a given that when this happens we will see Ben Bernanke making a speech about how he is going to do everything to keep interest rates at extremely low levels.

This process has gone on for the entire month of August.  This has made it very hard for Subprime Blogger to make mortgage rate predictions that are even remotely accurate.  It now looks as if daily mortgage rates have settled in around the 5.1% to 5.2% range but who knows when we will see that strong move up in the 10 year treasury rate.  No one really knows what is going to happen, but the 10 year yield is sitting at the bottom of its upward trend channel.

The current mortgage rates forecast remains cloudy but the 30 year fixed mortgage rates range of 5% to 5.5% remains intact.  It will be very interesting to see which way mortgage interest rates move in a strong direction to break this trend.  If it is to the downside, we could see a huge refi boom.  If it is to the upside, we could see another slide in home prices.  Only time will tell.

Author: Jesse Wojdylo

Category: Mortgage Rate Forecast
Tags:

Comments

Leave a Reply





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