New Two-Month Forecast for Mortgage Ratesby Tim Manni
Thinking about buying a home or refinancing your current mortgage sometime soon? If so, you’re going to need to get an idea of where mortgage rates are headed in the near future.
On a bi-monthly basis, HSH.com releases their Two-Month Forecast for Mortgage Rates. In each forecast, we review our previous prediction — evaluating the circumstances that caused rates to do what they did — and we examine current factors and conditions in order to forecast mortgage rates over the next nine weeks or so.
What’s on tap for the future?
Despite the absence of the Federal Reserve’s program that succeeded in lowering mortgage rates to near 50-year lows, current turmoil in overseas markets, combined with a slow U.S. economic recovery has served to lower mortgage rates once again to levels comparable to the lowest the economic downturn produced to date.
But how long can these extraordinarily-low rates last?
In our last forecast, we expected that the Federal Reserve would likely begin to raise the Fed Funds rates as soon as their late-June meeting. However, given the financial turbulence overseas, that increase may not happen until the late summer or early fall. Temporary delays such as this, combined with new developments in the market seem to suggest that decades-low mortgage rates will be around for a little longer than originally thought.
At the close of business yesterday (05/24/10), the 30-year Conforming rate finished at 4.87%. With rates this low, there’s not a lot of room for them to go but upward, but how quickly remains an open question.
Click here to continue reading our Two-Month Forecast for Mortgage Rates in order to find out exactly where we think mortgage rates are headed over the next two months.