Mortgage Rate Predictions – Rates Ready to Make a Strong Move
Posted on | July 6, 2009 | 1 Comment
Please use Subprime Blogger to keep up with up to date mortgage rate trends. We also offer several articles on how to get low Wells Fargo mortgage rates which could save you hundreds of dollars on each mortgage payment.
Currently, mortgage rates are poised to make a very strong move. The question that we must answer is “which way will that move be?” A lot of that is determined by the government and the 10 year treasury rate. When looking at this chart of the 10 year treasury rate you will see that the treasury rate is sitting very close to its 50 day moving average. You will also notice that the bottom of the upward trend channel is roughly in the same area.
If this support level holds, look for the 10 year to push higher, possible back up to 4%. If this is the case, average mortgage rates could go all the way to 6%. If the government steps in and auctions off a ton of treasury bonds and the Fed ups their purchasing of mortgage backed securities, you could see the 10 year treasury rate break below its support levels. If this happens, it could fall all the way back down to 3.1% or close to its 200 day moving average. If this is the case, look for historically low mortgage rates, possibly even lower than we saw in March.
With that in mind, I think mortgage rates will continue to grind sideways this week. Last weeks mortgage rate predictions were 5.27% vs. the actual data of 5.32%. This weeks mortgage rate predictions
30 year fixed rate mortgage – 5.35%
I do not expect that strong move in daily mortgage rates until we see what happens with the 10 year treasury rate. Watch that support level and see if it holds; if it does not, be ready for some more extremely low mortgage rates.
Tags: average mortgage rates > current mortgage rates > Low Mortgage Rates > Mortgage Rate Predictions
Comments
One Response to “Mortgage Rate Predictions – Rates Ready to Make a Strong Move”
Leave a Reply
July 6th, 2009 @ 2:57 pm
[...] 6th – Check out the newest mortgage rate predictions are here: Mortgage Rate Predictions – Rates Ready to Make a Strong Move. Average mortgage rates are likely to make a strong move in one direction but do you know which [...]