Experts Share Views on Future of Mortgage Rates

This week, mortgage rates sunk to a 10-month low. That should be great news for those considering a home loan at the moment.

But what about a month from now? Six weeks from now? Bankrate.com talked to real estate experts, recording their view on the future of interest rates.

Almost half of the panelists believed mortgage rates will remain relatively unchanged (plus or minus 2 basis points) over the next 35 to 45 days. A third think rates will fall over that period, and about one-quarter believe rates will rise.

Here are some quotes from the experts:

Long-term [home mortgage rates] have been range-bound for three months. We’re at the bottom of that range and, given that we’ve bounced higher each time we’ve touched the bottom of the range, it’s likely that long-term rates will have a tough time going lower.

Rates should continue to behave, but, with rates at the lows for the year and the reality of an ever-inverting yield curve, it appears long-term rates are priced for perfection, and any surprise would likely move rates higher.
- Bob Walters, chief economist, Quicken Loans/Rock Financial

Low [mortgage interest rates] are energizing the housing market, and the Fed will have to react.
- Dan Green, mortgage planner, Mobium Mortgage, Chicago

The Fed is in a wait-and-hold pattern. Although housing has cooled off significantly in parts of the country the overall economy is still growing at a modest pace and the Fed still has concerns with core inflation. I believe rates will not move very far at the moment.
- JR Diaz, vice president, Statewide Bancorp, Rancho Cucamonga, Calif.

Bernanke is still warning about inflation, but the bond market only wants to see signs of a slowing economy.
- Greg McBride, senior financial analyst, Bankrate.com

Rates keep dropping week after week as the housing sector weakens and inventories rise for everything from trucks to condos.
– Holden Lewis, senior reporter, Bankrate.com