No one knows where mortgage rates will go in 2010 but it looks like they are going to be up for much of December 2009.  President Obama and Ben Bernanke have worked hard to keep interest rates low but could this be the changing of the guard?  Are the markets going to actually set interest rates in the near future?  Look for the Federal Reserve Bank to come out with some type of commentary to push treasury yields lower which will also help to push mortgage rates lower.

Author: Jesse Wojdylo

President Obama and his staff have done everything in their power to keep interest rates low and that has not changed since his administration started.  The Federal Reserve Bank stated that they are going to stop buying US Treasuries by the end of September so this may change things a little bit as far as mortgage rate trends.  If the Fed stops buying treasuries, we are likely to see a move up in the treasury yield which would increase mortgage rates.

That being said, the Fed has bought so many treasuries that it might not matter if they stop buying them.  It will be quite the interesting scenario at the end of September.  We could either see mortgage rates drop well below 5% or we could see average mortgage rates shoot well above 6%; or anything in between could happen.

In an era of bad credit home loans, one would think that mortgage rates would move up because borrowers are more at risk and mortgage lenders would penalize them.  Luckily, President Obama has realized that high mortgage rates would only hurt the economy so he is doing what it takes to keep all mortgage and interest rates near all time lows.  The issue at hand is the fact that we might see a whip lash effect when the market starts setting interest rates.

If you have been thinking about refinancing or getting your first mortgage, now is as good of a time as any.  With mortgage interest rates near all time lows, now would be a great time to get out there and get your mortgage application submitted.  You do not want to wait and see mortgage rates go above 6%.

Author: Jesse Wojdylo

The current mortgage rate trends are not looking good for home owners that want to refinance or future home owners who want to get their first mortgage.  Since the beginning of last week, mortgage rates have made a straight shot up.  Last Monday we saw the 30 year fixed mortgage rate at 5.05% and today we are seeing it around 5.5%.  The 10 year treasury rate yield is pulling back slightly today but not enough to even remotely offset the 10% move higher last week.

It is very likely that we are going to see the 10 year yield works its way back towards, and possibly above, 4%.  If and when this happens, you can expect to see mortgage rates make a beeline to 6%.  It will be very interesting to see what this does to the housing market because there seems to be a great loss of interest in refinancing when mortgage rates make their way to 6% or higher.

If you have been thinking about refinancing or getting your first mortgage, I would speed up the process as much as possible.  If you wait a few months, or even a few weeks, you could be looking at mortgage rates well above 6%.  This would almost make it pointless to go through the refinance process.

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

The current mortgage rate trends are definitely showing the interest rates are trending towards 6%.  For the last month, mortgage rates have been in tight range between 5.1% and 5.3%.  At the end of last week we saw treasury yields sell off and the 30 year fixed rate mortgage dropped down to 5.05%.  Some financial analysts were actually calling for mortgage rates to drop below 5%.  The exact opposite of that happened and mortgage rates started moving higher.

The 10 year treasury rate yield has rocketed up 10% this week which has pulled mortgage rates up with it.  Mortgage rates have went from 5.05% all the way up to 5.45% in a matter of four days.  This is the type of movement that generally happens when the 10 year yield is uptrending and mortgage rates do not follow.  There are weeks in which mortgage rates move as much as .75% to catch up to the 10 year yield.

It will be very interest to see what happens next week as we can probably expect a pull back in both the 10 year yield and mortgage rates.  That being said, who really knows what is going to happen.  There are still lenders out there who are advertising mortgage rates under 5% so if you were thinking of refinancing or getting your first home, I would speed up the process as much as possible!

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

For the last few weeks, mortgage interest rates have been hovering around 5.2%.  Last week when the 10 year yield sold off, average mortgage rates saw a drop to close to 5%.  This is not surprising as the government is doing everything in their power to keep mortgage rates at historically low levels.  President Obama and his administration is hoping that low interest rates will entice new buyers into the market and it will put a floor in home prices.  It will be very interesting to see if this will work.

With that being said, now is as good of a time as any to refinance or buy a new home.  If you have been thinking about going through the mortgage application process, you might not want to wait much longer.  It would be ideal to have everything ready to go and when mortgage rates dropped below 5% you could just sign on the dotted lines.  There are advertisements all over the Internet and television stated mortgage rates under 5%.  You never know if you could get a rate this low until you actually call them and find out!

Overall, mortgage rates remain at historic lows but do not let this chance slip by as you never know when mortgage rates could turn around and head higher.

Current mortgage rate trends have been quite boring lately as there has been VERY little volatility.  It seems like mortgage rates have moved in the range of 5.1% to 5.3% for what seems like a month, although I know it has not been that long.  The 10 year treasury rate yield pushed much higher for a few weeks and now that is settling down as well.  I truly believe that mortgage rates are going to move up to catch up to the 10 year yield uptrend but no one really knows when that could happen.

With the uptrend of the 10 year yield still intact, one would think that the long term mortgage rate trend has been bottoming for quite some time and is now heading higher.  The next few months will go a long way in helping us figure out the trend of overall mortgage rates.  The government has worked hard to keep mortgage rates lower but eventually the market is going to set rates and it sure feels like those rates set by the market are going to be much higher than what they currently are.

If you have been thinking about refinancing or getting your first mortgage, now might be as good of a time as any because mortgage rates could pop at any minute.  This is especially true if the 10 year yield has another week of being up 10%.

Current mortgage rate trends have not changed much as there has not been much movement in the 10 year treasury rate yield this week.  The 10 year yield still sits around 3.67% which is still well above the level for average mortgage rates, but it looks like mortgage rates are not going to budge quite yet.  It will be interesting to see which one moves first; does the 10 year yield come down or does the 30 year fixed rate mortgage go up.  Seeing as the 10 year yield has been in an uptrend since the beginning of the year, I would say that mortgage rates will go up.

If you have been thinking about refinancing or getting your first mortgage, now might be as good of a time as ever as mortgage rates are still at historic lows but are likely to move higher.  Average mortgage rates are around 5.2% now, but it is very possible that we could see them move up drastically in the near future.  I would suggest contacting several lenders to see what types of offers they can make for you.  Obviously they will not be able to give you an exact interest rate but they should be able to tell you a little bit about where the market is headed.

Do not sit on the fence too long as mortgage rates could be around 6% soon if the 10 year yield continues to push higher.  Take action and complete that mortgage application that has been sitting around for the last few months.

The current mortgage rate trends are showing that mortgage rates are likely to move higher in the next few weeks.  The 10 year treasury rate yield continues to move higher; a move in the last two weeks from 3.3% to 3.7%.  There was a slight pullback Friday but nothing that would be considered a trend breaker.  The alarming issue at hand is the fact that the yield has moved much higher yet average mortgage rates have yet to blink.  We have seen a slight move higher, but nothing as we should expect.

Armed with the knowledge that the 10 year treasury rate is in a strong uptrend, we should expect mortgage rates to follow suit.  The last time there was a major disconnect in mortgage rates and the 10 year yield, we saw a huge one week jump in average mortgage rates.  There was actually one day in which rates moved as much as .75%.  It will be very scary if that happens to be the case again.  If we see a push up that much, average mortgage rates would be above 6%.  That would definitely be headline news.

I do not think this will be the case until we see another push closer to 4% from the 10 year yield.  If the yield pushes higher and mortgage rates do not, we can expect another one of those days and we will see headlines all over CNBC about how mortgage rates skyrocketed.  I will gladly say, I saw it coming. 

The current mortgage rate trends are showing that mortgage rates are likely to move to the top of the trend channel very soon.  The 10 year treasury rate yield was up over 4% today and the value of the US dollar continues to decline.  I cannot say that I didn’t call this several months ago.  With that being said, a strong move up in the 10 year yield means that average mortgage rates are sure to move higher as well.  It is interesting that Freddie Mac reported interest rates of 5.2% this week when many expected it to be much higher.

I would suspect that mortgage rates will start to trend in a direction that is much similar to the current 10 year treasury rate yield.    As you can see from the chart, that trend is definitely UP!  Unfortunately we have yet to see mortgage rates really move up with the 10 year yield but it is going to happen.  Over the 30 year course of mortgage rates being reported, the 10 year treasury rate has over a 90% cor-relational movement with the 30 year fixed rate mortgage.

This is very bad news for the future of low mortgage rates.  Do not be surprised to see a day or week in which mortgage rates move as much as .75%.  Sadly, that move is going to be to the upside.  If you have been thinking about refinancing or buying your first home, it is advisable to get your mortgage application in now as mortgage rates are sure to rise drastically in the near future!

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

The current mortgage rate trends remain intact in an uptrend even though Ben Bernanke did his part to push interest rates lower.  Every time it seems that the 10 year treasury rate yield starts moving higher, ole Ben comes on stage and does what it takes to push the yield lower.  This was his comment:

“that economic conditions are likely to warrant maintaining the federal funds rate at the exceptionally low levels of 0 to 1/4 percent, for an extended period”

It will be very interesting to see when this is lifted but it is holding interest rates back from reasonable levels.  This is great news for Americans who are refinancing or buying their first home, but it is not good news for the future of this country.

Eventually interest rates are going to normalize but it may be a sling shot effect as mortgage rates have been held lower to help the recovery of the housing market.  Unfortunately this is extending much longer than the Federal Reserve had hoped for.  Bernanke does not think it will lead to inflation, but how can it not? Overall, the upward trend in the 10 year yield remains, so we are likely to see higher mortgage rates.

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