After the 10% gain in the treasury rate yields, home loan rates went from 5.05% all the way up to 5.5% in just five short days. At this point, many analysts were convinced that we were going to see rates start a steady movement to 6%. With the 10 year yield up trending, it was almost inevitable, right? Well, not so fast. Just when loan rates hit 5.5% there was a speech by the Federal Reserve Bank saying that they were going to do everything in their power to keep interest rates historically low.
After this speech by the Federal Reserve Bank, rates saw a steady drop all the way down to 5.1%. We are currently seeing mortgage interest rates at 5.2% but that is likely to change in the very near future. It seems just when a direction is created, something happens to forces home loan rates in the opposite direction. It will be very interesting to see where we go from here but it is not an easy forecast, that is for sure