Mortgage rate predictions?

cardinalfanusa asked:


Rates went up in April/May/June, and have declined or held steady for the past 3 weeks. In your opinion, what will the rates look like over the next 12 weeks? Why?

Alan

Tags: Mortgage Rate, Mortgage Rates

This entry was posted on Monday, May 4th, 2009 at 3:28 am and is filed under Mortgage Loans. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

2 Responses to “Mortgage rate predictions?”

1. John M Says:
   May 5th, 2009 at 3:25 am

   Corey

   Mortgage rates at any point in time should reflect all the information known in the marketplace. What makes it seem like it can be predicted, is the stair step effect of certain economic indicators being released on a specific date. the market predicts the changes in those indicators, but at times the actual results of the measurements of the indicators suprises people and there may be a rather abrupt adjustment in a rate as a result.

   So, its hard to predict a change in mortgage rates, but easy to explain after the change.

2. Mark M Says:
   May 5th, 2009 at 4:47 am

   Clara

   Like any other market, the only thing to predict is based on the Business Cycle.

   The cost of Money (interest rate), when compared to the Business Cycle, has been unusually low for a very long time. And, in the 90’s, we saw a rare mediocre Business Cycle; rates only got in the high 7’s on “A Paper” loans at its peak. In the 80’s, we had a striking Business Cycle where “A Paper” mortgage rates went as high as 12%— so the old folks tell me.

   With rates on “A Paper” below 6.5% for several years now, don’t you think rates are going to climb and climb soon?