National Mortgage Rates Report: May 28, 2008

Posted by Brian J. Brady on May 28, 2008

Digg Delicious

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.

Comments

good stuff

Posted on May 30, 2008 by Bill Lyons

Add A Comment

Notify me of follow-up comments via e-mail.

simple_captcha.jpg
(type the code from the image)

Subscribe to Comments

Would you like to know if anyone responds to your comment? Use the comments RSS feed, or leave your email address below:

About

A real estate blog by agents, brokers, industry experts, and people of HomeGain to connect the real estate community. Find advice, ideas, opinions and more by Realtors®, for Realtors®.

Product Spotlight

Blog Categories

Blog Archives

Real Estate Blogs

Top Articles

Recent Comments