Mortgage Rate Predictions For August - Interest Rates Going Up

Mortgage rate predictions for August show us that it is very likely that daily mortgage rates are going to move higher.  The uptrend on the 10 year treasury rate yield that began in January has continued through the first half of there year.  There were some ebbs and flows in the process, but the 10 year yield remains in a strong upward direction.  This means that overall interest rates will be heading higher with the yield.

Current mortgage rates are around 5.4% which is much higher than they were just a few short months ago.  It seems like just yesterday that rates were at 4.8% but that was actually in the middle of May.  We have seen interest rates stay above 5% since the beginning of June and that trend is likely to continue throughout the summer.  Unless we see strong movement downward for the 10 year treasury rate yield we are not going to see overall rates below 5% again anytime soon.

If you were considering refinancing or buying your first home, now would be the time to go ahead and complete the mortgage application.  If you wait a few more month, you may see rates as high as 6.5% or 7%.  This would change your monthly mortgage payments by hundreds of dollars and that is exactly what you do not need in the current economic crisis.  It will be very interesting to see what higher mortgage rates do to the overall housing market.  One thing is for sure, higher rates mean lower home prices.  Can home prices really go down that much more?  We will see.