Mortgage Rates Moving Higher – Will Citigroup Benefit?

Posted on | December 29, 2009 | No Comments

There has been great chatter about mortgage rates moving higher in 2010.  A chief economist at Morgan Stanley predicts that mortgage rates could move as high as 8% within a year.  With this being the case, will the banking giant Citigroup benefit?  Citigroup has been advertising low mortgage rates for quite some time in hopes of gaining new customers.  We are not 100% certain how many customers they gained, or lost, in this low interest rate environment but what happens when interest rates move up.


There is little doubt that many home owners are going to flock to mortgage lenders in hopes of locking in to the last few weeks or possibly even months of low mortgage rates.  Some of these home owners will consider Citigroup along with the other big banks Bank of America, Wells Fargo and JP Morgan Chase.  Over the next few months it should be very interesting to see who comes out of the pack as the winner with interest rates likely to move higher.

With that being said, we may be posing a question that is irrelevant.  A Goldman Sachs economist came out and said that he feels 10 year yields we average 3.25% in 2010 which means that mortgage interest rates are likely to stay under 5%.  The two contradictory predictions by Morgan Stanley and Goldman Sachs have spurred great debate in the financial community; 2010 should be all kinds of fun when it comes to mortgage rates and financial markets.

Author: Jesse Wojdylo

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