Mortgage Rate Trends And Predictions For May 7 – 13, 2020

Mortgage Rate Trends And Predictions For May 7 – 13, 2020 | Bankrate – – Compare mortgage, refinance, insurance, CD ratesBRBRBRBRBRBRBRBRBRBRBRBRBRBRBRBRBRFacebook logoTwitter logoLinkedIn logoemail-iconhigh-APYs

5 min read May. 14, 2020

Rate trend index

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Natalie Campisi

Senior mortgage reporter

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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.

Nancy Vanden Houton, CFA photo

CFA, Senior Research Analyst, Stone & McCarthy Research Associates , New York, NY

Rates will fall.

Greg McBride photo

CFA, chief financial analyst,

Lower than expected inflation readings and concerns about re-opening the economy are pulling rates down a bit.

Elizabeth Rose photo

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.

Natalie Campisi photo

Mortgage Reporter,

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.

Logan Mohtashami photo

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.

Dick Lepre photo

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.

Joel Naroff photo

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.

Les Parker photo

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.

Gordon Miller photo

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.

Bob Moulton photo

President, Americana Mortgage , Manhasset, NY

Rates are flat.

Image Credits:

MoMo Productions/Getty Images