Profile picture for 98604

Are mortgage rates going to continue to rise or do you see them falling again in June?

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 28 2009 - US
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (8)

Brian - you are somewhat new here understood, however please note - Spamming is against Zillow Policy

I'm an old-timer on Zillow Paul, back to the days when the real estate guide was called a wiki.  The link button is offered in comments for clarification. There is a difference between dropping a link that says "Apply Online-Rates Low" and a clarification of opinion.  My comment would have been extraordinarily long had I reprinted it here rather than linking for clarification.  If linking to my "home site" offends your sensibilities, I'll gladly direct you and anyone else to an internal link on the Zillow website.

I appreciate the effort of self-policing; without it, Zillow would become Myspace.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 31 2009
The rates going up this week could have been the best thing for the mortgage market and also for us mortgage pros/nuts... the rates did drop some again today but I hope they go up a bit again and stay up for a spell..and then slowly creep down to a consistent level (in a perfect world) ...enough of this knee jerk, lock or die stuff ...we have all seen it, very low rates for a couple of hours, maybe days and then, bang! up again... and all the while the home loan seeker is saying "give me 4% or give me a loan mod..."

Maybe the most competitive lenders will catch up on their turn times? Maybe the rates become more consistent between all lenders?
(there has been a fast track spread going on, it seems the lenders/banks with the slowest underwriting/processing A to Z turn  times have the lowest rates, the lenders with the quickest turn times have slightly higher rates... this needs to be evened out...

Maybe you and I and all the other loan pro/nuts out there will be able to catch our breath, and on our paper work, and get some of our routine sleep back ...and the consumer will say "OKAY" sub 4% is likely a pipedream  hum, guess 4.75% isn't that bad after all"

*With all the constant madness going on within the walls of the likes of Wells etc. who knows how much stuff is falling through the compliance/details cracks, 4506T, HVCC etc. aside there is still room for errors/oversights when the files are flying over the green pea underwriters' desk like sand in a sand storm...

Maybe (last one) quoting will slow down and David G and the crew can come to shore for a bit and fix the APR horse hockey that has infected quoting over the past month or so...


PS though there can be much more to it,I admit that I tend to be a 10 yr chump too; when watching the big screen...  so far it has not bit me too hard

Brian - you are somewhat new here understood, however please note - Spamming is against Zillow Policy
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 29 2009
Of course, no one REALLY knows, including the Fed Chairman (his actions may be met with a lukewarm response by mortgage bond traders) but I"m assuming that you, as an interested consumer, expect mortgage professionals to give you an informed prognostication.

I think rates will be volatile but opportunities to lock-in, under 5% will be forthcoming soon.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 29 2009
The New Your Fed just bought billions of dollars of mortgage bonds, so this should help push rates down, at least short term.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 28 2009
Let me get my crystal ball.....

No one knows where mortgage rates will be in June - or at any other time. Bottome line is this: the Feds have been keeping mortgage rates artificially low by purchasing mortgage backed securities. This provided the illusion that there was a higher demand than the supply which drives prices up and rates down. Meanwhile, the yields on the 10 year Treasuries have been going up. There is a somewhat normal spread between the yields on 10 year Treasuries and mortgage backed securiites and the two will in general (but not always) follow along in parallel. Based on this, mortgage rates should be in the 6s right now.

There are other underlying problems - such as signs that the recession is beginning to bottom out. If a recovery is beginning, investors will opt for higher risk securities. They need to sell the safer equities (if that's where thier money is) in order to do that.
 
It's been oft said that the recovery can't happen unless the housing market turns around. And the Feds need mortgage rates to stay low to accomplish that goal. Meanwhile, they keep flooding the market with more bonds, more T-bills, and more notes to finance the ever increasing massive debt. Investors can tolerate only so much. But as you flood the market with bonds, and without a corresponding increase in demand, you essentially drive down the prices of bonds which in turn drives yields up. If the Feds keep flooding the market with notes, T-Bills and bonds, guess which way mortgage rates will probably go....

All I can say is you're going to have to watch the markets, watch the Fed, and watch what Congress does. If they don't get a handle on the massive debt they're piling on and reign in spending, we may be heading for hyperinflation. And you don't even want to venture to guess where mortgage rates will be then.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 28 2009
Beware of someone that trys to give you a definitive answer on this one!  Within the present market, at best you can give an educated "guess" to this. 

My suggestion to anyone considering a real estate purchase or refinance?  Develop a good relationship with a professional lender that you either know or has received strong referrals from those you trust as soon as possible.  Tell that lender what your goals are financially and with your lending ... in the short term and for the future.  Together you can then work towards preparing yourself for those goals and also develop the most flexibility possible in regards to timing and purchase/refinancing.  You will then be ready to take advantage of lower interest rates should they occur ... or secure your financing quickly before they inch up higher.  

Best of luck ... and write again if you have further questions.

Gene Mundt, Professional Mortgage Banker
Chicago Bancorp
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 28 2009
I agree with the 1st response.  I think they will start decreasing after the Fed meets next Tuesday.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 28 2009
There is no way to know. Anyone who gives you an answer is merely guessing.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 28 2009
 
Related Questions
USDA rate and lender credit
Profile picture for TristanN
Latest answer by TristanN
2 minutes ago | 12 answers
Rates on the move again!
Latest answer by Hamp Yonce
4 hours ago | 4216 answers
Looking for a New Construction Jumbo Loan for 5% down in Texas
Profile picture for Lowell Sterling
Latest answer by Lowell Sterling
6 hours ago | 2 answers
Looking for 5% down jumbo loan for $500k in Benton PA?
Profile picture for Andrew Kellam
Latest answer by Andrew Kellam
9 hours ago | 4 answers
Doubts about rates and fees
Profile picture for hpvanc
Latest answer by hpvanc
2 days ago | 11 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.