Your Questions About Mortgage Rates Forecast

David asks…

What is the forecast for mortgage rates?

The rate now is lower than when I took out the mortgage (5.5% Massachusetts). The house is worth less though than when we bought it.

Would your best guess be that are they going to continue to fall? Or jump on now. And why do you think they’ll fall (or rise)?

One more thing. Go real slow for the blonde in the room. I don’t speak math.

admin answers:

It should be around 5% or maybe drop to 4.7% by end of Q3 this year on 30 year fixed rate home loan.


Mandy asks…

Is there anyway whatsoever to predict / forecast mortgage interest rates?

I was told I can look at the US TBonds for today and it may effect the rate for the next day… true? anything else?

admin answers:

While it is true the US treasuries may be indicators for the direction of longer term interest rates, thirty year (mortgages) are priced based on a confluence of factors. The movement in these interest rates may be correlated due to the fact that they are influenced by many of the same factors, i.e. Unemployment numbers (reported monthly), inflation fears, the actions of the Federal Reserve Board and even the debt purchasing habits of China and Japan. One thing is for sure, interests rates are going up.

If you are closing in the next six months, you may want to look into the cost for a rate lock. Any longer than six months, the cost of locking may become a bit opressive. The truth is, if you lock in for say 0.5 points and rates go down, find a different mortgage company with a lower rate as long as your rate lock does not require you use that mortgage co.

Linda asks…

I am buying a new home. What is the 30 yr fixed rate mortgage forecast for the next month (May-June)?

What I am really asking is, does the forecast for interest rates predict a continued drop in mortgage rates for the next 30 days? Trying to decide when to lock in. Thanks

admin answers:

I picked up a 5.75% rate. (new mortgage)

Home prices are expected to drop by as much as 10% next month.

Laura asks…

I’m thnking that home mortgage rates will go as low as 5% and that home will probably decrease about 20 % in

most markets and that prices will remain in a valley for about 8 to 10 years …… What’s your forecast ????

admin answers:

With another rate cut likely, and a general concern with liquidity and economic health over inflation, I don’t see 30 year mortgage rates at 5%.
The real estate market is very regional, and in some case almost local. If a house in a trendy San Diego neighborhood went up 100% in 5 years, then sure a 20% decline is really not that much, unless you happened to buy at the market peak. Most major markets are already down 10%, so another 5-10% decline might be possible.
Setting aside the speculative actions that effected some markets, real estate is generally related to unemployment rates, job creation, and population growth.
So areas like Charlotte, Dallas, Chicago, etc will not see a 8-10 years of flat prices. Could prices in Detriot be flat for 10 years, sure. But that is related to problems in the auto industry.

Betty asks…

Should I lock in 30yr fixed mortgage rate today? We close in 60 days. I can lock in 5.6% today or let it ride?

The 10yr bond was up this morning and is currently down. Are there other indicators I should be looking at? Other interest rate forecast sources?

Thanks for your help!

admin answers:

Flip a coin.

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