Mortgage Rate Predictions For The Next 7 Days (April 7, 2011)

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Looking for a mortgage rate prediction? I am a voting member in the Bankrate.com Mortgage Rate Trend Index. This week’s survey should give you good guidance.

Conforming Mortgages Rates Only

The mortgage rates survey comes with some fine print. These mortgage rate predictions are for conforming mortgages in places like Nashville, Tennessee; Bethesda, Maryland; and wherever else conforming and super-conforming mortgages are available.

Jumbo mortgages are specifically excluded in the survey because jumbos loans are priced differently. The same is true for FHA Streamline Refis. Furthermore, unique loan types, like those for investors with 5 or more properties financed, are excluded.

You can click here to get a real-time rate quote from me.

Breaking Down The Predictions

Here’s the mortgage rate outlook for the upcoming week:

• 56% think mortgage rates will increase
• 6% think mortgage rates will decrease
• 38% think mortgage rates will won’t change

I expect mortgage rates to increase.

My advice not be appropriate for your individual situation and I’m not always right. Ultimately, you may find your time better pressing this button in case of dire emergencies.

What I told Bankrate.com : “Persistently high oil prices take their toll. Mortgage rates move higher.”

Rising Gas Prices Correlates To Rising Mortgage Rates

Over the past 5 years, there’s been a strong correlations between oil prices and mortgage rates. When oil prices rise, mortgage rates rise. When oil prices fall, mortgage rates fall.

The link is in inflation — and it’s awful for mortgage rates.

See, as oil prices rise, it trickles down to most facets of our everyday lives. Higher energy costs make it more expensive for manufacturers to produce goods; for businesses to ship goods; and, for retailers to sell goods.

Rising costs erode profits.

Meanwhile, rising energy costs makes it more expensive for consumers to heat and cool their homes; to keep their household appliances running; and to keep their cars full of gasoline.

Disposable income shrinks.

These two forces collide. As businesses raise prices to maintain profits, the “cost of living” rises, and households demand higher wages just to keep up.

This is inflation incarnate and we’re staring it in the face.

Food costs are rising, gas prices are rising, and mortgage rates are rising, too. You’ve likely missed the market bottom at this point, but rates are still pretty terrific compared to what you’ll see coming down the pike.

Cut your losses now and lock your mortgage rate.

Your Next Step : Get A Rate Quote

To get a mortgage rate quote or talk about inflation, call or and I can walk you through it. I love to work with my blog readers and I think you’ll find my rates as low as they come.

Or, to just cut to the chase and get a rate quote, here’s how:

1. Use my online mortgage rate quote form — no social security number required
2. I’ll review your notes and send basic follow-ups via email
3. Once you reply, I’ll get live rates in your hand. You can lock or wait — your choice.

Expect to have rates in your hand within about an hour, during business hours.