Mortgage Rates

Mortgage Rates, What will they do?

Some people say:

"Even with rates slightly increasing in the days ahead, due to inflationary indicators/concerns, the yields on the bonds will attract international buyers, causing rates to decline."
Steve Levitt, vice president of mortgage lending, Guaranteed Rate, Chicago

"Mortgage-backed securities are benefitting from the U.S. Treasury's decision to back and support Fannie Mae/Freddie Mac, so rates should improve in the coming days as more confidence in and demand for mortgage-backed securities returns."
Sue Woodard, loan consultant, CTX Mortgage, Minneapolis

"Technically, mortgage-backed securities have broken above the resistance level of the 200-day moving average. Fundamentally, further revisions to worsen prior job reports will add pressure to stock sell off benefitting bonds as the "safe haven." Rates should enjoy further declines."
Sean Rafferty, author of BayAreaMortgageReport.com, BayAreaMortgageReport.com, San Jose, Calif.

"Wow! What a couple of days we have just seen in the mortgage market. While the Treasuries are down less than 0.125 percent from last week, the big news is that mortage rates have fallen by 1/2 of a percent (.50 percent) in just two days! All of this comes from the news that the government has put Fannie and Freddie into conservatorship and will prop up the two giants. Take advantage and lock!"
Mitch Ohlbaum, president, Legend Mortgage, Los Angeles

"Rates will continue to dive with 9.3 percent of all mortgages being delinquent and underwriting requirements still very tough. The government has to bring rates down far enough for the term affordable housing to mean something in terms of the absorbing excess housing inventory from around the country."
Jeff Lazerson, president, Mortgage Grader, Laguna Niguel, Calif.

Quotes taken from www.bankrate.com