Mortgage Rate Predictions – Interest Rates Up to 5.5%
Posted on | August 10, 2009 | 2 Comments
Please use Subprime Blogger to get your weekly mortgage rate predictions. The new mortgage rate predictions articles are posted every Monday, Wednesday and Friday so please check back in.
Mortgage rate predictions for this week could get very dicey. Last week we saw the 10 year treasury rate yield shoot up 10% which sent mortgage rates much higher. The 30 year fixed mortgage rate went from 5.05% all the way up to 5.45% in less than a week! We are seeing a bit of a pullback today but nothing to offset the huge moves up last week. What will be interesting to see is how the 10 year yield reacts to the fact that the government is going to stop buying up treasuries in September. My guess is we will continue to see a rally in the yield if this happens. That means MUCH higher mortgage rates.
If you have been waiting to refinance or buy your first home in hopes that mortgage rates are going to go below 5% then you might be out of luck. It looks very likely that mortgage rates are going to be above 6% before they are below 5%. The government has done everything in their power to keep mortgage rates low to stimulate the economy and it looks like in September they are going to take their hands out of the pot and let the markets set interest rates. This means that we are going to see mortgage rates well above 6%.
If you are in the process of refinancing or buying your first home, I would suggest you speed up the process. If you wait a few months or even a few weeks, you could be looking at mortgage rates in excess of 6%.
Comments
2 Responses to “Mortgage Rate Predictions – Interest Rates Up to 5.5%”
Leave a Reply
August 14th, 2009 @ 8:43 am
Thanks for the tip off. I still cannot understand why the mortgage rates are so high compared to the savings rates and bank rates at the moment, its rather bizarre.
August 15th, 2009 @ 5:04 pm
If you assume they are interconnected, you could make a guess that one always rises while the others drop.