Where Are Mortgage Rates Headed?

RollercoasterToday’s $20,000 question is…

Where are mortgage rates headed in the near future?

Most believe the rapid rise in rates experienced over the last month will not be sustained and that they will level off into a range between 4% and 5%.

When recently asked, Zillow’s director of Mortgage Marketplace, Erin Lantz suggested:

“It is impossible to predict. However, we expect there to be a lot of volatility, probably between 4.5% to 5%.”

www.zillow.com/suffolk-county-ny/.

 

In Bankrate.com’s Mortgage Rate Trend Index last week, 20% of the experts said rates would go up this week, 30% said rates would go down and 50% said they would remain unchanged.

What about going forward?

Doug Duncan, chief economist for Fannie Mae recently addressed where mortgage rates may eventually end up:

“I don’t think the Fed ultimately would be troubled with a 6.5% mortgage rate.”

Why wouldn’t the Fed be troubled? They have artificially kept rates low in order to stimilate the economy. As economic indicators begin to show signs of a recovery, the stimulus will be pulled back and rates will rise.

Frank Nothaft, Freddie Mac’s VP and chief economist confirms this:

 “As the economy continues to improve, we expect to see continued upward movement in long-term interest rates.”

 

Buckle in!! The rollercoaster ride will probably continue.

“If you know someone who would appreciate the level of service and expertise that I provide, please contact me and I’ll be happy to follow up and take great care of them.”

 

 

About The Author

Jolie Powell

Jolie Powell has been a distinguised leader in the Real Estate industry since 1987. Prior to entering the world of Real Estate, she worked as a TV producer for the Advertising Agency, Dancer Fitzgerald Sample in NYC. Jolie's expertise in counseling buyers and sellers brings people together from Long Island, and indeed, Globally! Having lived abroad and traveled extensively, Jolie has an excellent understanding of many cultures. As a Cuban-born American, she is fluent in Spanish and communicates well with international clients relocating to the North Shore of Long Island. Jolie is proud of the high level of trust she and her clients have established and looks forward to continue building exceptional client/broker relationships.

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