Mortgage Rate Trends And Predictions For May 7 – 13, 2020 | Bankrate – Bankrate.com – Compare mortgage, refinance, insurance, CD ratesBRBRBRBRBRBRBRBRBRBRBRBRBRBRBRBRBRFacebook logoTwitter logoLinkedIn logoemail-iconhigh-APYs
5 min read May. 14, 2020
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free – so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
Natalie Campisi
Senior mortgage reporter
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for .
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
In the week ahead (May 14-20), None of the experts predict that rates will rise, 60 percent of the experts predict a drop in rates and 40 percent predict that rates will remain relatively unchanged (plus or minus 2 basis points). Calculate your monthly payment using Bankrate’smortgage calculator.
Experts predict where mortgage rates are headed
Week of May 7 – 13
Lower than expected inflation readings and concerns about re-opening the economy are pulling rates down a bit.
— Greg McBride
None of our experts predicted rates will rise.
CFA, Senior Research Analyst, Stone & McCarthy Research Associates , New York, NY
Rates will fall.
CFA, chief financial analyst, Bankrate.com
Lower than expected inflation readings and concerns about re-opening the economy are pulling rates down a bit.
Sales manager, AmCap Mortgage , Dallas, TX
Mortgage bonds seem to have found a bottom and are making a slight bounce higher off a critical support level. Fed Chair Jerome Powell’s comments of uncertainty and prolonged recession are helping bonds recover. Despite the market being flooded with new bond supply this week, yesterday’s auction was met with renewed demand — a good sign for interest rates.
Mortgage Reporter, Bankrate.com
Economic uncertainty (affirmed by Fed chair Powell’s bleak outlook via a webcast interview with Adam Posen, the director of the Peterson Institute for International Economics) might push investors toward MBS, which will drive rates lower.
Senior loan officer, AMC Lending Group , Irvine, CA
While pricing, in general, has gotten better from the mortgage market meltdown phase, the 10-year Treasuryyield hasn”t budged too much.The stock market has had a big rally since April and the St.Louis Financial Stress Index has fallen a lot, as well.Just for this week, let”s entertain a flight to safety from stocks into bonds since the recent auction was solid, driving rate pricing lower.
Senior loan officer, RPM Mortgage, Inc. , San Francisco, CA
The techs are mixed because markets are confused. No one knows where to invest their money because of the massive uncertainty generated by COVID. What we could see in the coming week is equity selling with money moving to Treasury and MBS debt which could lower mortgage rates. Equities have been pumped up beyond any realistic value by quantitative easing (QE) cash infusion. At some point, concern about equity value will exceed QE-created momentum.
President and Chief Economist, Naroff Economic Advisors , Holland, PA
Rates will stay the same. Nothing special happening this week, at least that we know of.
Senior vice president, Loan Logistics , Trevose, PA
Mortgage Rates go nowhere. Here”s a parody based on the 2013 mega – hit “Roar” by Katy Perry. “Who’s got the eye of the tiger, a fighter, Dancing through the fire, “Cause it is the champion, and who”s gonna leap and ROAR.” Stay focused on the bearish factors, but mortgages, long-term Treasuries, gold, oil, U.S. Stocks, and the dollar struggle to break loose and ROAR.
Owner, Miller Lending Group, LLC , Cary, NC
I would expect rates to stay the same. The movement on the 10-year Treasury seems meaningless as the disconnect between Treasuries and mortgage backed securities continues. I could easily see a scenario where the 10-year Treasury rises above 1 percent and mortgage rates edge lower. The focus right now should be more on supply and demand and now is not the time for higher rates.
President, Americana Mortgage , Manhasset, NY
Rates are flat.
Image Credits:
MoMo Productions/Getty Images