How do you feel the mortgage rates are right now and what do you think they will do in the future?

Question

I'm curious about anyone who knows about mortgage rates. How low had they gotten and how low do you feel they are now compared to where you think they will go? I know that no one can predict anything, but there must be smart people who are familiar with them and have an idea. I know it can be right or wrong, but those in the industry I think have a better idea than someone not in the industry. Also, where would you go to find the best rate right now? If I go to something like bankrate.com will I find the cheapest? Are there any companies that have scams on sites like that? What should I watch out for?

Answer 1

I am in the mortgage business for the last 24 years. We have no more information than anyone else but I can tell you the rates are good right now.. In the high 4's low 5's. We are expecting them to start rising after the end of March as much as 1% higher because the fed will no longer be purchasing mortgage backed securities. Rates change every day, sometimes more than once. New laws require that if you get a Good Faith Estimate it has to be within 1/8th of a percentage of what you actually end up closing with- so lenders can't raise costs/rate etc like they used to. Rather than a web-site I would call your own local bank, credit union, or a mortgage company in your area. Always nice to deal local & they will treat you in a more personal way. Finally ask for a mortgage lender instead of a broker- you will save dramatically on costs. Good luck!

Answer 2

They are at 50 year historic lows. They are likely to go back up, probably as the economy starts to recover. If you have good enough credit and can afford to buy, and will stay in one place long enough to make the purchase of a house a good risk to take, now is a great time to get a mortgage.



Local credit unions tend to have really good rates on mortgages. If you can afford a relatively short payback time (15 years) there are some online banks like ING direct that have great deals.



Otherwise, ask the realtor you are working with if they can recommend a mortgage broker to help you find a great deal.

Answer 3

When in search for the best home loan possible, bad credit mortgage

lenders offer better options. Furthermore, if you had a past bankruptcy or

foreclosure, obtaining a conventional or FHA mortgage may be out of

question. These loans require a waiting period for those with a

bankruptcy.



http://www.quickloans.we.bs/



On the other hand, a bad credit mortgage lender understands that

situations beyond our control occur. Hence, these lenders offer a range of

loan programs. This benefits those with low credit scores, and homebuyers

that require closing cost and down payment assistance.

Answer 4

In the early 1980's our rate was 14%. Those smart people aren't on Yahoo answers, their busy making money. As for my opinion, rates will remain the same throughout this year and make see some increases next year. The cheapest rate may have strings attached, such as a larger down payment requirement. And there are boo coo sites that are scams, I suggest you deal with a local lender, one who office you can walk into.

Answer 5

I found this website, that predicts for the week. Maybe it'll help?

http://www.bankrate.com/finance/mortgages/mortgage-rate-trend-index8-142384.aspx:

Excerpt:

Mortgage Rate Trend Index

By Bankrate.com





Panel prediction

57% Up

0% Down

43% Unchanged

Will rates rise or remain relatively unchanged? Experts and Bankrate analysts provide their insights.



This week (March 11 - March 17) the experts say: Rates probably will rise some more. This week, almost three-fifths of the panelists believe mortgage rates will rise over the next week or so. The rest believe rates will remain relatively unchanged (plus or minus 2 basis points).



Get rate alert »Industry experts and Bankrate commentary

Experts' comments Panel

On March 9, FNMA & FHLMC mortgage rates (required net yields) were within 0.63 percent of the 10-year Treasury -- a record low gap. The belief is that when the Fed exits the mortgage market the gap is likely to return to "normal" and mortgage rates will rise. What is more certain is that mortgage rates will have greater day-to-day volatility unless the Fed has the powers of persuasion to keep its member banks purchasing. In a word, be prepared for a lot more day-to-day volatility than we have had in the past 15 months.

Dick Lepre, senior loan officer, RPM Mortgage Inc., San Francisco

up

Homebuyers are out in force. The economy wins. Rate shoppers lose.

Dan Green, TheMortgageReports.com, Waterstone Mortgage, Cincinnati

up

I'm voting for an increase in rates but only slightly. MBSs have traded in a tight range as of late and it stands to reason that the trend will continue. Rates will fluctuate based on several economic reports coming in the next week. The path of least resistance seems to be upward.

Chris Karageorge, MinnesotaMortgageDaily.com, Universal American Mortgage Co., Wayzata, Minn.

up

New home sales as well as existing home sales have taken a tumble. The stifling regulatory loan approval and funding requirements are simply killing purchase and refinance transactions that would otherwise happen. The cure to the previous predatory lending problems is worse than the disease. The lending system has completely broken down.

Jeff Lazerson, president, Mortgage Grader, Laguna Niguel, Calif.

unchanged

I've been saying this for some time now, as mortgage interest rates continue to remain steady. However, with the Fed soon exiting the market for purchasing mortgage-backed securities and a continual flooding of the market with additional cash, this is nearing an end. Although we can't call when it will happen, we know that it will happen. Now is the time to visit with your local mortgage professional to discuss how today's low rate environment can benefit you.

David Kuiper, mortgage planner, First Place Bank, Holland, Mich.

unchanged

The 10-year is currently trading 3.72 percent, which is slightly higher than we saw last week. Rates remain steady even in the face of the Fed backing out of the market as it is clear there is plenty of money on the sidelines to pick up the slack as has been seen in recent weeks. The U.S. remains the best and safest haven for investments. Don't expect too much movement in rates in any direction.

Mitch Ohlbaum, loan officer, Bank of America, Los Angeles

unchanged

Mortgage rates have been remarkably stable over the last few weeks. With a relatively light schedule of economic releases I expect mortgage rates to hold steady over the next week.

Michael Becker, mortgage consultant, Green Pastures Mortgage & Finance, Lutherville, Md.

unchanged

I say unchanged, but volatility has re-entered the rate arena. While we normally try to keep these up and down calls to a few basis points, unchanged for me this go round is within an 0.125 percent. All risk is on rates starting to edge higher with little opportunity to improve. Best advice, lock early.

Jim Sahnger, mortgage consultant, Palm Beach Financial Network, Stuart, Fla.

unchanged

Bankrate's analysts Panel

The Fed is nearly done with mortgage-bond purchases so the tables will turn soon, sending mortgage rates higher. It may not happen overnight, but expect a pickup in rate volatility very soon.

Greg McBride, CFA, senior financial analyst, Bankrate.com, North Palm Beach, Fla.

up

The Federal Reserve will stop buying mortgages within three weeks. Afterward, expect mortgage rates to rise and fall in big waves, rather than the ripples we've seen in the last months. When people say rates will be volatile, that's what they mean. The general rate trend will be upward, with many ups and downs along the way.

Holden Lewis, senior reporter, Bankrate.com, North Palm Beach, Fla.

Answer 6

They will be doing nothing but going up this year