National Mortgage Rates Report: May 28, 2008

Posted by: Brian Brady on May 28th, 2008

Mortgage rates jumped in the past 7 days because of rising oil prices. This is the staglationary fear I expected. Mortgage rates have increased to 6.0% (30 year fixed) today.

I expect mortgage rates to rise another .25% in the next 14 days for these reasons:

  1. Possible uncertainty at the Federal Reserve Bank.
  2. Oil above $125/barrel (which translates to $4/gal. gasoline at the pump)
  3. Inflation affecting the European economy.

Bond traders hate uncertainty so we expect a lot of volatility through Labor Day. As mortgage rates approach the 6.25% level, we should see them plateau unless inflation gets even worse.

I expect I’ll be changing the recommendation to float in 10-14 days but for now, lock all mortgage rates at loan application.

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3 Comments on “National Mortgage Rates Report: May 28, 2008”

Bill Lyons

good stuff

Deborah

I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.

Deborah

http://termlifeinsurance2.com

Dyepowere

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