4.25% 30 Year Fixed Rate
Loan Amount
Loan Type

Program Rate APR
30-Yr fixed 4.750 % 0.7 to 1
15-Yr fixed 3.750 % 0.7 to 1
5/1 ARM 3.125 % 0.7 to 1
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Mortgage Rates: A Virtual Roller Coaster In Unconventional Times

Although approximately 70% of the U.S. economy is consumer driven, one of the better conventional methods to know which direction are mortgage rates headed is to look at home prices and mortgage rates. However, these are not conventional times: there is a virtual roller-coaster affect being felt especially in the once robust housing market with no apparent signs of coming to a stop anytime soon.

The housing market is especially showing signs of idiosyncrasies during these times of economic instability: a slight rise in home sales with considerable drops in the rates of mortgages and home prices. But there is no apparent strong indication of which way the housing, building or mortgage markets are going. Today, what applies to one segment of an industry does not necessarily apply to another.

Home Sales

According to the National Association of Realtors,, last August, 2011 brought welcome news that existing home sales surprisingly rose 7.7% with 5.03 million homes up from the 4.67 million home sales last reported in July. The increase in homes sales was only slight, however, it indicated a still interested home buyer market.

Mortgage Rates

However, the rates of mortgages saw no such increase. Only last month, 30 year fixed-mortgages showed interest rates holding at 4.79%, Yet, the latest figures now indicate the interest rate for the same term length to be at 3.750%. This was an unexpected decline in rates which the experts did not see coming.

Concerning rates set at 15 year mortgages, there was a drop from a previous 3.90% down to today’s 3.500%. Unmistakably, the downward trend continues even with adjustable rate mortgages, (ARMs). Not only are ARMs rates not increasing, they are actually decreasing from last month’s high of 3.490% down to the current 2.990%.

The Future Outlook

Will mortgage rates go down is subject to many other factors which are not simple to place into an economic equation. Such factors include: the current bond market, consumer confidence, high unemployment rates and the general public’s perception of the economic state in general.

The question of will mortgage rates go down or not can only be answered if one is a prophet. Industry experts can only predict based on what are the past/present statistics and not what is beyond their or anyone else’s control. Everything is subject to change and there is much that is changing in this economy — both nationally and internationally.