Please use Subprime Blogger for your mortgage rate predictions as well as to keep up with current mortgage rate trends.

The mortgage rates forecast for this week is looking a little better for homeowners.  Since the 10 year treasury rate hit right below 4% it has been a straight shot down to 3.71%, shedding another 2 percent today alone. As I predicted last week, the treasury rate had plenty of room for a pullback after a meteoric uptrend from 2% to 4%.  It looks like support for the 10 year is around 3.4%, but we know in this market anything can happen.  If we do see the 10 year go this low, mortgage rates could pull all the way back into the 5% range.

With this knowledge, the mortgage rates forecast does not look nearly as bad as it did two weeks ago.  Obviously, any flip of the printing press switch by Ben Bernanke could change everything, but for now, it looks like a healthy pullback is in store for mortgage rates before we see possible higher rates.  Average mortgage rates are likely to be in the 5.4% to 5.6% range this week based on when you talk to your mortgage lender.  With that being said, it might be worth it to see if rates do get that healthy pullback before attempt to refinance or get that first mortgage.

It has been once crazy market lately and the stock market has not even taken part in it.  Today was saw a huge sell off on Wall Street, so stocks might be taking the headlines with their volatility while the 10 year treasury rates and current mortgage rates take a rest for a few weeks.  This is exactly what the housing market needs because positive sentiment is very important.  If rates are fluctuating on a daily basis, it is very hard to create anything positive.  For now, the mortgage rates forecast is for rates to stabilize or head slightly lower.