Will they go up or down or remain unchanged?
According to Bankrate probably up. Bankrate.com is the Web’s leading aggregator of financial rate information and every week they survey and publish a weekly Rate Trend Index.
- 50% predict mortgage rates will increase
- 25% predict mortgage rates will decrease
- 25% predict mortgage rates will remain unchanged
The Bankrate.com survey is for conforming mortgages it does not apply to FHA mortgages, VA mortgages, or jumbo mortgages.
This is probably the best time to buy a home in the last 20 years so if you are in a position to take advantage of the temporary dip in rates now is the time. Also it is impossible to time to the market so don’t even try; if you want to time the bottom of this market you may have already lost. Interest rates remain very attractive and should be taken advantage of today when possible. What the Fed announcement did last week is extend the time period that rates will remain low. Please do not allow the talking heads on TV to convince you that this means rates will go down even further. Market conditions and capacity issues will more than likely prevent this.
So it seems likely that rates will increase if past performance is any indication. If we look back at the past few years, right around this time, inflation pressures start building for one reason or another and we have had summer mortgage rate increases. We can’t be sure when inflation will finally take hold this year, but it will. And if it’s sooner than later, you’ll be glad you locked in your mortgage rate at today’s still-low levels.
FIND YOUR PHILLY HOME AND TAKE ADVANTAGE OF GREAT RATES