The current interest rates forecast is very clouded as overall rates have been all over the place in the last three weeks. We have seen mortgage rates go from 5.05% to 5.5% and all the way back down to 5.1%. Where are interest rates headed in September; only time will tell.
The current interest rates forecast is very hard to decipher at the current moment. At the end of July the 30 year fixed rate mortgage was trending much lower and many people thought that we were going to have a breakdown below 5%. Just as that was happening, the 10 year treasury rate yield started a strong weekly uptrend that showed a 10% gain. This pushed overall mortgage rates much higher.
After the 10% gain in the treasury rate yields, home loan rates went from 5.05% all the way up to 5.5% in just five short days. At this point, many analysts were convinced that we were going to see rates start a steady movement to 6%. With the 10 year yield up trending, it was almost inevitable, right? Well, not so fast. Just when loan rates hit 5.5% there was a speech by the Federal Reserve Bank saying that they were going to do everything in their power to keep interest rates historically low.
After this speech by the Federal Reserve Bank, rates saw a steady drop all the way down to 5.1%. We are currently seeing mortgage interest rates at 5.2% but that is likely to change in the very near future. It seems just when a direction is created, something happens to forces home loan rates in the opposite direction. It will be very interesting to see where we go from here but it is not an easy forecast, that is for sure.
Subprime Blogger gives a interest rates forecast so you know where mortgage rates are headed. Keeping up with mortgage rate trends can save you a ton of money so let Subprime Blogger help you!
