Will mortgage rates rise over the next two months?by Tim Manni
For mortgage shoppers — whether those buying homes or refinancing their current loans — locking in the lowest mortgage rates is always one of (if not) the biggest concern. According to a recent survey conducted by MortgageMatch.com, “two out of three Americans (70.6%) believe access to affordable mortgages is a serious problem.”
Nearly a third of the survey’s respondents said that one of President Obama’s “top priorities to help homeowners in 2011″ should be to keep interest rates low. With little indication that the administration will release a new program to keep mortgage rates low, homebuyers and refinancers need to be aware of where mortgage rates are headed in the future. That’s precisely why HSH.com developed their “Two-Month Forecast for Mortgage Rates.”
In each forecast, we review our previous prediction — evaluating the circumstances that caused mortgage rates to do what they did — and we examine current economic factors and conditions in order to forecast mortgage rates over the next nine weeks or so.
Each two-month forecast is made up of four different parts: (1) the preface; (2) a recap of our previous prediction; (3) the forecast discussion; (4) and finally the forecast itself.
Unfortunately at this point in the recession-recovery process, the economy hasn’t bounced back as strongly as we had hoped. There are still too many unanswered questions and new pieces of legislation coming into the picture to provide the private mortgage market with enough clarity to see how the market will shape up in the near future:
These things affect not only the willingness to lend money, and to whom, but also the price of money to be lent. By this point, six quarter of growth in the economy and rising profits should be fostering an improvement in the lending climate, but these uncertainties are serving to hold that back. There are too many unanswered questions: Can loans be made, profitably, both today and tomorrow? Will rule changes be applied retroactively, penalizing firms for yesterday’s decisions? Will the mortgage market we’ve known for 30-40-50 plus years continue to operate in a manner we can recognize? Will there even be a Fannie or Freddie to sell loans to, or are we going to build a new model from scratch?
How much will mortgage rates increase over the next two months? To find out the answer to that question and more, be sure to read our entire Two Month Forecast for Mortgage Rates.