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Will rates rise or remain relatively unchanged?
Experts and Bankrate analysts provide their insights.
 Alert
me when the RTI is updated
This
week (May 22 - May 28) the experts say:
The results are almost evenly split. No strong trend is evident.
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| May 22 - May 28 |
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This week, 40 percent of the panelists believe mortgage rates will rise over the next 35 to 45 days. One-third believe rates will remain relatively unchanged (plus or minus 2 basis points) and the rest think rates will fall.
Panel:
Up:
40% |
Down:
27% |
Unchanged:
30% |
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| Experts' comments and Bankrate
analysts |
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Experts' comments |
Panel |
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As
stocks retreat from their recent rally, bonds
(and therefore mortgage rates) should be the beneficiary.
David Kuiper, mortgage
planner, First Place Bank, Holland, Mich.
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down |
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Prices
paid to U.S. producers are heading higher as expected
by rising raw material costs -- nothing new there,
but it's rising faster than expected. As this
continues for a short period, it will drive down
borrowing rates on mortgages. However, once prices
are forced to increase, modest inflation will
cause rates to rise. It won't be rates that make
homes affordable -- it will be price devaluation.
Cameron Findlay,
chief economist, LendingTree.com, Charlotte, N.C.
|
up |
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When
the stock markets lose triple digits and mortgage
bonds don't blink, it's a pretty good sign we
have greater odds for less bond demand -- and
higher rates. Still no indication that rates are
breaking out of the channel they've been trading
in for weeks. In a phrase, it's the underlying
value of the assets to which mortgage bonds are
attached.
Dan Dowling, senior
mortgage adviser and president, United Mortgage
Capital Corp., Altamonte Springs, Fla.
|
up |
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Mortgage
rates will remain unchanged as investors continue
to hold onto their cash.
Jeremy Forcier, mortgage
broker, California Mortgage Advisors, San Rafael,
Calif.
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unchanged |
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Rates
should bounce like lottery balls while trending
lower overall.
Dan Green, Mobium
Mortgage, author of TheMortgageReports.com, Cincinnati
|
down |
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Inflation
from commodities and energy continue to hammer
away at bond and mortgage backed securities. However,
stocks have not liked the news either. So look
for rates to remain rangebound from here, albeit
in a wider range than the typical 2 basis point
to 3 basis point range as indicated. Expect volatility
to continue, as rates can change a lot daily and
even hourly.
Jim Sahnger, mortgage
consultant, Palm Beach Financial Network, Stuart,
Fla.
|
unchanged |
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Mortgage
rates will move up. There are many inflationary
indicators in the wind, including oil prices that
continue to climb. Inflation is the arch-enemy
of bonds, including the mortgage-backed securities
that home loan rates are based on, so more inflation
will equal higher rates.
Sue Woodard, Loan
consultant, CTX Mortgage, Minneapolis
|
up |
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Improved
as stocks should head lower.
Barry Habib, CEO
Mortgage Market Guide, Holmdel, N.J.
|
down |
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The daily tech is bullish (lower yields), the
weekly bearish (higher yields) and the monthly
about to cross to bearish. We could catch a small
break when the weekly upcrosses, but it will be
at the end of the monthly bull market, so I see
only a chance for a brief respite and then the
start of a depressing bear market.
Dick Lepre, senior
loan officer, Residential Pacific Mortgage, San
Francisco
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unchanged |
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Bankrate's analysts |
Panel |
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Inflation
worries and economic concerns will play tug of war
with mortgage rates over the next few weeks.
Greg McBride, financial
analyst, Bankrate.com
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unchanged |
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Rates
fell this week, but they'll bounce back up. Inflation
hasn't gone away, despite the weak economy. Mortgage
rates respond to inflation.
Holden Lewis, senior
reporter, Bankrate.com
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up |
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About the Bankrate.com Rate Trend Index
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This week: May 22 - May 28
