Please use Subprime Blogger to get your current mortgage rates forecast.  I am also producing daily mortgage rates each morning that shows the correlation to the 10 year treasury rate.

Over the last few weeks, I have mentioned that mortgage rates would likely move sideways or decline in a slight manner; this is exactly what happened.  I fully expected the 10 year treasury rate to fall to 3.4% where it should find support for two reasons.  The 50 day moving average is at 3.4% and the up trend channel shows support at the same exact area.  For more clarity, check out this chart.

If this does hold support for the 10 year treasury rate, look for mortgage rates to find support as well.  I expect rates to be lower this week as the 10 year should fall to its 50 dma but I will make the prediction that we will see a bounce from there and mortgage rates will follow.  With that being said, my mortgage rate predictions for this week are as follows:

30 Year Fixed Rate Mortgage - 5.27%

For any of you looking to refinance or lock in at a low level, now might be the time as a strong support level is going to be tested.  We are sure to see government interaction when the mortgage rate trends upward, but how many treasury bonds can they possibly sell?

This entry was posted on Monday, June 29th, 2009 at 10:36 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.