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