Verbatim from my mortgage rate prediction article on Monday:

Knowing that the Fed scaled back greatly this week, I personally feel this is a week we are likely to see a slight uptick in mortgage rates.  Last week’s survey showed overall rates coming in at 4.78% which is one of the lowest readings in history.  This weeks mortgage rate predictions:

30 Year Fixed Rate Mortgage - 4.84%

Freddie Mac’s weekly survey reported mortgage rates at 4.84%.  It seemed quite obvious to me that the scaling back of MBS purchases would support higher mortgage rates.  Mortgage rates only bounced .06% but MANY financial gurus continue to predict mortgage rates to free fall each and every week.  Now that we have seen a short term bounce in mortgage rates, will the Fed amp up their MBS purchases to make sure rates continue their overall slide?  We will be the first to let you know the the Federal Reserve Bank releases the data depicting how much they dumped into mortgage backed securities.

Even though we got a short term bounce, it is still one of the best times in history to refinance or buy your first home; IF you can qualify and get through the mortgage application steps.  Do not be naive and think just because your credit is ok that you will be able to get a mortgage rate under 5%.  Realize that you need to be on very good financial ground to get the advertised rates you have seen.

Mortgage Rate Predictions