Mortgages continue to see increase
Are rates going to continue to rise? That is the question everyone is asking.
I wish I had a crystal ball, but all I can do is look at the current signals within the market place!
30 year fix mortgage rate are set by supply and demand through the bond market, they vary every day and prices are constantly adjusted by what investors/services want to see flowing into their portfolios. The FED still expects the labor market to improve very slowly, so they are reluctant to remove monetary stimulus by raising rates. Fed officials believe that inflation will remain low for the next couple of years, meaning that there is little pressure to raise rates (FOMC meeting this Wednesday).
Mortgage rates are not set by the FED, or thoughts on inflation, they are set by the MARKET! There is a good chance rates could be on the rise. Treasury yields have been increasing since the end of November. If you were hoping to hit the bottom, it might be too late.
Rates are still fantastic so if you are thinking about purchasing or refinancing, it might be a good idea to get your application submitted today! No one knows where rates are headed for 2010!
