Economic Conversation

AUTHOR: Patty Cramer

Mortgage rate predictions were extremely easy to make from October of 2008 until just two weeks ago; in more words or less, mortgage rates were going down, down and down some more.  There were some weeks where rates saw a slight bounce of .05% or so but nothing compared to have happened last week.  Mortgage rates saw a jump of almost 50 basis points as rates went form 4.91% to 5.29%.  This is very bad news for current and future home owners.

Many would say that it will lower home prices because mortgage rates are going higher but aren’t home prices extremely low already?  Now that you know mortgage rates are going higher, possibly much higher, are you going to give up on refinancing?  If you were in the market to buy a new home, has this changed your mind?

AUTHOR: Catherine Brammer

The current mortgage rates forecast is getting very difficult to figure out!  For awhile we could just say that mortgage rates were going down but that seems to be over.  Rates have went from 4.8% to 5.29% in two weeks!  This is unreal; it is now the highest level we have seen in 2009.  I sure hope this does not continue as many people are going to lose interest in the housing market.  It would be very reassuring to see home prices actually increase in the next few months!