30 Year Fixed Mortgage Rates – 5.32%

Many more bad credit mortgage and bad credit financing articles to come later today so please check back in.

Author: Jesse Wojdylo

Mortgage rate predictions have been very hard to make over the last few weeks as interest rates have been very volatile.  In the last three weeks we have seen mortgage rates go from 5.05% all the way up to 5.5% and now back down to 5.1%.  We are currently hovering around 5.2% but that could change in the blink of an eye with the way things have been going lately.  Making accurate predictions has been almost impossible because every time mortgage rates start to tick up, the Federal Reserve Bank has some type of commentary that forces interst rates lower.

If you have been following mortgage rates for an extended period of time, you know just how volatile the market has gotten.  For the entire month of July, mortgage rates stayed in a very tight range between 5.1% and 5.3%.  That all changed at the beginning of August when the 10 year treasury rate yield saw a huge weekly gain of over 10%.  This gain pushed mortgage rates all the way up to 5.5% and I honestly thought we were going to see mortgage interest rates work their way towards 6%.

When making mortgage rate predictions we often look at the trend and the trend of the 10 year treasury rate yield is definitely up so we would all think that mortgage rates would start trending up, right?  Well, that obviously seems to be the case, but every single time we see a slight dip in the 10 year yield there is a huge drop in mortgage rates almost all the way back down to 5%.  I realize much of this is due to Fed commentary but when is the market going to actually set interest rates?

The one thing that I must say is that the housing market does look to be getting better because interest rates have stayed so long.  New housing supply has greatly dropped and home prices seem to be moderating which is the first signs of a recovery.  I honestly hope we all don’t drink the kool-aid and start buying on huge amounts of credit again.  Wait, this is America, of course that is going to happen.  Hopefully this time people realize that they can’t do it with money they are likely never to see.

With that being said, this weeks mortgage rate predictions are as follows:

30 year fixed rate mortgage: 5.25%

You have likely seen advertisements on the Internet and television for mortgage rates under 5%.  Now is one of the best times in history to be in the market for a new home or refinancing your mortgage.  I would suggest getting out there and actually contacting some of these mortgage lenders to see if you can get a mortgage rate under 5%.  You will never know until you actually try!

Author:  Jesse Wojdylo

Mortgage rate predictions for this week could get very dicey.  Last week we saw the 10 year treasury rate yield shoot up 10% which sent mortgage rates much higher.  The 30 year fixed mortgage rate went from 5.05% all the way up to 5.45% in less than a week!  We are seeing a bit of a pullback today but nothing to offset the huge moves up last week.  What will be interesting to see is how the 10 year yield reacts to the fact that the government is going to stop buying up treasuries in September.  My guess is we will continue to see a rally in the yield if this happens.  That means MUCH higher mortgage rates.

If you have been waiting to refinance or buy your first home in hopes that mortgage rates are going to go below 5% then you might be out of luck.  It looks very likely that mortgage rates are going to be above 6% before they are below 5%.  The government has done everything in their power to keep mortgage rates low to stimulate the economy and it looks like in September they are going to take their hands out of the pot and let the markets set interest rates.  This means that we are going to see mortgage rates well above 6%.

If you are in the process of refinancing or buying your first home, I would suggest you speed up the process.  If you wait a few months or even a few weeks, you could be looking at mortgage rates in excess of 6%.

• Daily Mortgage Rates
• Mortgage Rate Forecast
• Mortgage Rate Trends

Mortgage rate predictions have been quite difficult to make over the last two weeks as mortgage interest rates have went for quite the ride.  The 10 year treasury rate yield has shot up over 10% this week and it looks very much like we are going to see 4% on the yield.  If this happens you can fully expect to see mortgage rates around 6%.  Just Sunday we saw the 3o year fixed mortgage rate at 5.05% and today we are seeing it around 5.45%. You can expect much more of this if the 10 year yield continues higher.

For quite some time I have predicted that mortgage rates were going to move higher but it seemed like it was just not going to happen due to the government’s interactions.  Well, it looks as if interest rates are finally being set by the markets and we are seeing rate going much higher.  While no one knows what next week brings, it is definitely the case that the 10 year yield is in a strong uptrend and that does not look to be breaking down anytime soon.

If you have been thinking about refinancing or getting your first mortgage I would suggest speeding up the process.  There are still mortgage lenders that are advertising mortgage rates below 5% so I would jump on that as soon as I got the chance because it could get very ugly soon.  In all reality, it looks as if 6% mortgage rates are going to happen much sooner than 5% mortgage rates.

• Daily Mortgage Rates
• Mortgage Rate Forecast
• Mortgage Rate Trends

Mortgage rate predictions have been very difficult lately as the 10 year treasury rate yield has done the exact opposite of mortgage rates.  This is very unsual, but has definitely been the case.  As the 10 year yield was pushing higher, mortgage rates trended sideways to down!  At the end of last week, we saw the 10 year yield sell off and mortgage rates have fallen all the way to 5.05%.

This is great news for anyone who is looking to refinance or buy their first home.  I think we all know someone who refinanced back in March and got a mortgage rate well under 5%.  Now might be the time to go ahead and get started on the mortgage application because the government continues to do everything they can to keep interest rates as low as possible.  With this knowledge my mortgage rate prediction is:

30 Year Fixed Rate Mortgage – 5.04%

Mortgage rate predictions are going to be very tough this week as the 10 year treasury rate yield has moved higher while 30 year mortgage rates have not moved significantly.  This is quite interesting as the last time this happened we saw average mortgage rates move drastically over a one week period.  Is this week going to be the same?  I personally think that the buying up of US debt by the Federal Reserve Bank has made rates artificially low but that is going to eventually change.

With this knowledge, this weeks mortgage rate prediction

30 Year Fixed Rate Mortgage – 5.42%

Yes, this is exactly what I predicted last week, but lets go with it again as I truly believe mortgage rates are going to move up and catch up to the 10 year yield.  If that does not happen, it is VERY likely we will hear some big news from Ben Bernanke about future monetary moves by the Federal Reserve Bank.

My mortgage rate predictions for this week were quite a bit high.  On Monday, I made the following prediction:

30 Year Fixed Rate Mortgage – 5.42%
ACTUAL 30 Year Fixed Rate Mortgage – 5.2%

I honestly thought that the 10% move in the 10 year treasury rate yield was going to push average mortgage rates much higher but it was not the case.  Mortgage interest rates were up, but not nearly as much as predicted.  This week has been a sideways movement in the 10 year treasury rate yield until today when the yield moved up 4.5%; this is sure to push mortgage rates higher late this week and early next week.  I would think that mortgage rates would start to correlate with the 10 year yield a little bit more in the near future and that means that interest rates will move up dramatically.  Please check back in on Monday morning to get next weeks mortgage rate predictions.

Please check out the daily Subprime Blogger rant; today I addressed the issue of Robin Hood Obama:

Robin Hood Obama, this story is all too familiar.  Small businesses are increasing prices and cutting staff because of YOU!  Didn’t you want to increase jobs?  Well, your higher tax policy for the wealthy and health care bill are two ways to increase unemployment

Please read the entire article here: Robin Hood Obama, Stop Taking from the Rich to Give to the Poor

Even though there has been a drop in the 10 year treasury rate yield over the first few days of the week, I will reiterate that I believe mortgage rates are going to move higher.  After Fed Chairman Benanke spoke in front of the House Services Financial Committee the 10 year treasury rate yield tanked over 3%.  This did push the 10 year yeild through the 50 day moving average, but the lower upward trending support line remains intact.

If will be very interesting to see how the remainder of the week plays out.  Now that Bernanke has done his best to push interest rates lower, what will happen now?  I think that we could possibly see a test of the lower trendline and then we will continue to move higher.  This is if another major announcement is not made during this period of time.  Only time will tell but I will keep my mortgage rate predictions at:

30 Year Fixed Rate Mortgage – 5.42%

Check back in Friday to get the complete summary for the week.

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

The current mortgage rate predictions are very bad news for those of you who were hoping to get a lower interest rate this week.  Last week we saw the 10 year treasury rate yield jump over 10%!  This is a huge number for a one week move.  To compound matters, the 10 year yield is now above the 50 day moving average and that is looking to be a support level.  We could very well see an assault of 4% on the 10 year yield sometime very soon, maybe even in the next few weeks.  If this happens, expect those low mortgage rates to move up towards 6%.

Last week we saw that the Freddie Mac weekly mortgage survey showed overall mortgage rates being down.  That will not be the case this week.  While we do not know where the 10 year treasury rate is headed for the first half of this week, it is highly unlikely that it is going to tank well below its 50 day moving average.  With that being said, this weeks mortgage rate predictions are:

30 Year Fixed Rate Mortgage – 5.42%

If this is the case, it will be WELL above last week’s number and there will be a huge media push that mortgage rates are heading much higher again.  By reading Subprime Blogger, you stay well ahead of the crowd!

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

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 5.05 percent, down 0.29 percentage point from the previous week, the lowest since the week ended May 22, but higher than the all-time low of 4.61 percent set in the week ended March 27.

As stated, my predictions are for the Freddie Mac data which will be released later on Thursday, but as projected mortgage rates did come down a bit.  With this being said, there looks like bad news on the horizon.  The uptrend in the 10 year treasury rate remains intact with a strong 4.5% gain on the yield of the 10 year on July 15th.  The 10 year treasury rate is now well above the 50 day moving average and could work its way back to 4% on the yield.

If the 10 year yield works its way back to 4% we are likely to see the 30 year fixed mortgage rate push towards 6% very soon.  The Federal Reserve has worked very hard in an attempt to keep mortgage rates low, but they may have run out of bullets.  Maybe the market is actually setting interest rates after the BILLIONS of dollars that have been printed.  It will be very interesting to see where the 10 year yield goes from here as it has totally baffled me as of late.  Any of you with thoughts, I encourage you to please comment and clear this up…