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February 9th, 2011

Will mortgage rates rise over the next two months?

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Whats NextFor 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.

Forecast Discussion

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?

Forecast

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.

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One Response to “Will mortgage rates rise over the next two months?”

  1. Tweets that mention Will mortgage rates rise over the next two months? | HSH Financial News Blog -- Topsy.com Says: February 9th, 2011 at 4:23 pm

    [...] This post was mentioned on Twitter by HSH Associates, Nick Pakulla and Hot In Real Estate, Roberto Mazzoni. Roberto Mazzoni said: Will mortgage rates rise over the next two months?: For mortgage shoppers — whether those buying homes or refina… http://bit.ly/dXJQUW [...]

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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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