Borrowers seeking the lowest possible rates should not assume they will be coming tomorrow—those rates are here today. Waiting probably won’t deliver significantly lower mortgage rates.
Foster City, CA (PRWEB) October 11, 2011
Amid current record-low rates and the Federal Reserve’s Operation Twist, HSH.com released its latest Two-Month Forecast for mortgage rates. The Two-Month Forecast predicts that rates will remain at or near their current record low levels within the next weeks, possibly falling even lower in the early part of the two-month period of the forecast.
HSH.com’s prediction of continued low mortgage rates comes during a time of continued uncertainty about the future of interest rates. A squabbling Congress and a difficult late-summer economy left the Federal Reserve with little choice but to provide new stimulus. Its Operation Twist, which is in place until June 2012, will help push long-term interest rates even lower than they have been. However, if the Fed’s Operation Twist is successful in jump-starting U.S. economic activity, mortgage rates may rebound.
“Record-low mortgage rates are in the market at the moment. The Fed’s Operation Twist is intended to spur economic growth, and interest rates will rise if they are successful,” said Keith Gumbinger, vice president of HSH.com.
“Borrowers seeking the lowest possible rates should not assume they will be coming tomorrow—those rates are here today. Waiting probably won’t deliver significantly lower mortgage rates,” Gumbinger advised.
HSH.com predicts that over the next two months, mortgage rates will range from 4.10 to 4.50 percent for conforming 30-year fixed-rate mortgages and from 2.90 to 3.30 percent for 5/1 adjustable-rate mortgages (ARMs).
HSH.com has been issuing its Two-Month Mortgage Rate Forecast for almost 10 years. Forecasts dating back to 2004 are available on HSH.com. The current Two-Month Forecast for mortgage rates is accompanied by discussion of present and expected market conditions and includes a recap of the previous forecast. The latest forecast can be found at http://www.hsh.com/2month4cast.html.
HSH.com is a trusted source of mortgage data, trends, news and analysis. Since 1979, HSH’s market research and commentary has helped homeowners, buyers and sellers make smart financial choices and save money on mortgage and home equity products. HSH.com, of Pompton Plains, N.J., is owned and operated by QuinStreet, Inc. (NASDAQ: QNST), one of the largest Internet marketing and media companies in the world. QuinStreet is committed to providing consumers and businesses with the information they need to research, find and select the products, services and brands that meet their needs. The company is a leader in visitor-friendly marketing practices. For more information, please visit QuinStreet.com.
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