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May 25th, 2010

New Two-Month Forecast for Mortgage Rates

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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.

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One Response to “New Two-Month Forecast for Mortgage Rates”

  1. Tweets that mention New Two-Month Forecast for Mortgage Rates | HSH Financial News Blog -- Topsy.com Says: May 25th, 2010 at 10:52 am

    [...] This post was mentioned on Twitter by HSH Associates, Nick Pakulla. Nick Pakulla said: RT @HSHassociates: HSH.com releases a new Two-Month Forecast for Mortgage Rates http://bit.ly/awgrTa We examine factors & conditions [...]

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About the HSH Blog

HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

Our bloggers:

Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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