Mortgage rate predictions for late August will get very interesting because of the volatility in overall interest rates over the last three weeks. With that being said, it still looks as if interest rates are going to be up.
Mortgage rate predictions have been very hard to make for the month of August. When August began, interest rates were around 5.05%. We then saw a huge jump in the 10 year treasury yield which pushed the 30 year fixed mortgage rate much higher to 5.5%. Many people assumed that overall rates were on their way to 6% but this did not happen. The Federal Reserve Bank had commentary that stated that they would continue to do whatever it takes to make sure interest rates stay historically low.
After the commentary by the Fed, overall rates dropped all the way back down to 5.1%. As you can see, this would make it very difficult to predict mortgage rates. Interest rate predictions are even harder today as rates are up again to 5.2% for really no reason at all. It is likely that we will get another statement from the Federal Reserve Bank or the President to push rates back down as soon as they get back up to the 5.5% level.
The one great thing about the current state of the economy is the fact that interest rates remain at historically low levels. If you are in the market to refinance or buy your first home, now might be as good of a time as ever. If you look at a history of the 30 year fixed mortgage rate, you will see that we are near the lowest we have ever been; this means that you need to take action and get a lower mortgage rate!
Subprime Blogger offers a series on mortgage rate predictions and where overall rates are headed. Sometimes it is very difficult to make accurate interest rate predictions but Subprime Blogger seems to work at it each and every week.
