Mortgage Rate Trends

The interest rate environment is something that changes on a weekly, if not daily basis.

It is helpful to get opinions from professionals to help gauge what direction the market is heading towards.

The article, “Mortgage Rate Trend Survey,” featured on mortgage-x.com for the week of July 31, 2006, gives a round-up of where professionals think the rates are headed for the week.

This survey, conducted by mortgage-x.com, surveys over 250 mortgage professionals each Monday to gather their expectations for the market.

Over the next 30 days, 49 percent said that rates will rise slightly. Zero people said rates will rise significantly. Thirty-one percent of respondents said rates will remain unchanged. As for declining rates; 16 percent said rates will decline slightly and 2 percent said rates will decline significantly.

As for the next 90 days, 54 percent said rates will rise slightly and 5 percent said rates will rise significantly. Sixteen percent said they would remain unchanged. Twenty percent said they will decline slightly and 3 percent said they will decline significantly.

So, to sum all of that up mortgage professionals generally think that mortgage rates are gone to rise slightly within the next 30 to 90 days.

This is not good news, but at least they are not predicting a significant increase. That would be a lot worse.

“Currently, about 49% of the participating mortgage professionals believe mortgage rates will rise slightly over the next 30 days and 54% believe mortgage rates will rise slightly over the next 90 days.”

Here are some individual results of the mortgage companies who participated: “HomeSalesRI : Over the next 30 days rates will decline slightly; over the next 90 days rates will remain unchanged. Comment by Mandie Sullivan: Rates have remained at all time lows, despite slight increases over the past few months... We anticipate a slight decline this week through the end of the month, and then slightly increasing rates thereafter.”

The Lender’s Depot was not as optimistic about the future of mortgage interest rates.

“Over the next 30 days rates will rise slightly; over the next 90 days rates will rise significantly. Comment by Shannon Swanson: I wish I could say I have faith in the Feds to curtail the upswing in rates, yet I would be foolish. Our rates have been on the up & up for all of the wrong reasons. The Feds believe they are curbing inflation, which in reality they are knocking our whole.”

Overall, the majority of the companies surveyed believe that mortgage rates will at least rise a little bit within the next few weeks and months. Only time will tell what is really going to happen.

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