Bankrate.com Mortgage Trend Index (May 15, 2008)

I am a regular participant in the Bankrate.com Mortgage Rate Trend survey and this week's survey is now available.

As a reminder:

1. The survey is for conforming loans only.
2. Asking "Where are rates headed?" is not mortgage strategy -- it's a mortgage gamble.  You can always call or email me for help with your personal mortgage plan.

Anyway, on to the group's predictions for the next 30 days:

• 50% of participants predict rates will increase
• 31% of participants predict rates will decrease
• 19% of participants predict rates will remain unchanged

I am predicting that rates will decrease over the next 30 days, but that doesn't mean you should necessarily follow my advice when choosing whether to lock a rate, or float it.  My advice may not be appropriate for your individual situation.

From the Bankrate.com survey:

"Evidence of a stronger economy is attracting investors. More demand for mortgage bonds edges rates down."

It wasn't so long ago that a U.S. recession was declared "inevitable" so as evidence to the contrary emerges, sentiment is shifting.  This has led to strange bounces in the mortgage markets.

Yesterday, for example, markets opened better, lost a ton of ground mid-day, and recovered it all back by closing.  A quoted mortgage rate could have varied by as much as 0.250% percent yesterday, despite the market opening and closing at the same level.

• 50% of participants predict rates will increase
• 31% of participants predict rates will decrease
• 19% of participants predict rates will remain unchanged

I am predicting that rates will decrease over the next 30 days, but that doesn't mean you should necessarily follow my advice when choosing whether to lock a rate, or float it.  My advice may not be appropriate for your individual situation.

From the Bankrate.com survey:

"Evidence of a stronger economy is attracting investors. More demand for mortgage bonds edges rates down."

It wasn't so long ago that a U.S. recession was declared "inevitable" so as evidence to the contrary emerges, sentiment is shifting.  This has led to strange bounces in the mortgage markets.

Yesterday, for example, markets opened better, lost a ton of ground mid-day, and recovered it all back by closing.  A quoted mortgage rate could have varied by as much as 0.250% percent yesterday, despite the market opening and closing at the same level.