Where will Mortgage Rates go from here?

Of the 953,000 Jobs Created In 2013, 77%, Or 731,000 Are Part-Time. This information and economic data is a critical piece to understanding where mortgage rates will go from here. Since we started seeing mortgage rates spike back in May based on perceptions that the Federal Reserve would be ending it's Bond Buying program, you can find many articles where everyone’s predictions are for 10 year Treasury bond yields to go higher; the bond bubble is brewing and so on. What most are failing to take into account is the real underpinnings of the economy and just how bad the numbers really are when it comes to robust growth in the US Economy i.e. GDP.

If Real Estate sales where to slow down due to higher mortgage rates, it would put a real damper on the overall economy. The Federal Reserve can not allow that to happen and therefore will continue buying treasuries well into next year, this will continue to fuel lower mortgage rates and cheap money flowing into the stock market.

If you are closing on a home in the near term, you would be wise to lock your interest rate  at any dip in the rates. If you are buying in the 4th quarter of 2013 you may be pleasantly surprised at the rates available to you.

Sources of information & research:
“We Have Become a Nation of Hamburger Flippers”: Dan Alpert Breaks Down the Jobs Report
The 10 Year Treasury Rate: Where to Next?
Obamacare Full Frontal: Of 953,000 Jobs Created In 2013, 77%, Or 731,000 Are Part-Time