Mortgage Rates Forecast – Interest Rates Headed to 6%
Posted on | August 7, 2009 | No Comments
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The current mortgage rates forecast is starting to clear up. For quite some time interest rates were not acting as if the treasury yield was uptrending. In fact, as the treasury yield was uptrending, mortgage rates were moving sideways to down. This is very unusual as there is a strong correlation between the 10 year treasury rate and the 30 year fixed rate mortgage. When one moves up, the other seems to always follow. That being said, the 10 year yield has moved up over 10% this week which has forced mortgage rates to move higher.
We have seen a move from 5.05% to 5.46% in four short days. This is the exact type of move I talked about a few weeks ago. It would not surprise me at all if we continue to see this type of movement all the way up to 6%. This would not be good at all for anyone who was waiting to refinance or buy their first home. There are still mortgage lenders out there that are advertising mortgage rates under 5% but this is not likely to last very long. If you want to get a low mortgage rate, I would speed up the process as much as possible because rates are just going to get higher.
Next week should be very interesting as far as the 10 year yield and mortgage rates are concerned. We could see a pull back in both but the long term trend is definitely up and we are likely to see mortgage rates near 6% very soon!
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