Mortgage Rate Predictions – Mortgage Rates Continue Higher

Posted on | May 11, 2009 | No Comments

Last week I pointed out that the Federal Reserve Bank was easing on the purchases of Mortgage Backed Securities which should cause mortgage rates to see a short term bounce.  Well, it looks as if that bounce may last two weeks as rates are likely to head a little bit higher.  This is a tough week as the stress test results were released and MANY financial institutions are asking for more money.  It will be interesting to see how mortgage rates react to this but my prediction is:

30 Year Fixed Rate Mortgage – 4.87%

Once again I will reiterate that there is no scientific method to predict rates, I go solely on human psychology.  I am start to get a little more positive on the housing market; not because the data is looking better, but because America is a country that gets through the hard times.  If you have been debating to get a mortgage, now might be the best time in history.  If Americans area as persisitent as I think they are, we could start to see a recovery sometime soon.

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