Mortgage Rate Predictions for May – Have We Seen a Short Term Bottom?
Posted on | May 4, 2009 | 7 Comments
After back to back weeks of $50 billion and $75 billion in Mortgage Backed Securities Purchase, the Federal Reserve Bank took a huge step back. Last week our government only purchased $5 billion in MBS which is extremely small compared to what they did at the beginning of April. Ben Bernanke has made the commitment to buy back $1.75 TRILLION in MBS so this trend is not likely to continue. So far, the Fed has gobbled up about $1 trillion in MBS which has sent mortgage rates plummeting. This will be a moot point if unemployment continues to rise and new housing supply does not shrink.
Knowing that the Fed scaled back greatly this week, I personally feel this is a week we are likely to see a slight uptick in mortgage rates. Last week’s survey showed overall rates coming in at 4.78% which is one of the lowest readings in history. This weeks mortgage rate predictions:
30 Year Fixed Rate Mortgage – 4.84%
It would not surprise me at all if they jumped even a little more than this but the intentions of the government are to keep mortgage rates low so a slight jump is expected. Make sure to check back in on Thursday to see how accurate I was in my prediction of mortgage rates.
Mortgage Rate Predictions
Tags: housing supply > mortgage backed securities > Mortgage Rate Predictions > year fixed rate mortgage
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May 4th, 2009 @ 10:10 am
[...] Mortgage Rate Predictions for May – Have We Seen a Short Term Bottom? [...]
May 4th, 2009 @ 11:24 am
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May 4th, 2009 @ 12:14 pm
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May 4th, 2009 @ 2:32 pm
[...] Your Mortgage News Source. … It would not surprise me at all if they jumped even a little more than this but the intentions of the government are to keep mortgage rates low so a slight jump is expected. Here is the original: Subprime Blogger / Mortgage Rate Predictions for May – Have We … [...]
May 7th, 2009 @ 8:49 am
[...] from my mortgage rate prediction article on Monday: Knowing that the Fed scaled back greatly this week, I personally feel this is a [...]
May 8th, 2009 @ 7:29 am
[...] from my mortgage rate prediction article on Monday: Knowing that the Fed scaled back greatly this week, I personally feel this is a [...]
May 11th, 2009 @ 4:30 pm
[...] from my mortgage rate prediction article on Monday: Knowing that the Fed scaled back greatly this week, I personally feel this is a [...]