Mortgage Rate Trend Index

The selling pressure in the stock market (and the) worsening employment outlook is being tempered by uncertainty in the financial markets and continued hints of inflation.
David Kuiper, mortgage planner, First Place Bank, Holland, Mich.

Rates have improved but have had difficulty maintaining these levels. Hot core CPI numbers and weakness in all sectors continue to stress the value of the dollar. This "recession" has to run the course. More important than rates is the continued tightening in lending standards. The lowest rate on the planet isn't worth a thing if the money isn't lent.
Dan Dowling, senior mortgage adviser/president, United Mortgage Capital Corp., Altamonte Springs, Fla.

Inflation remains on the rise, eroding the value of the fixed return provided by a bond, including a mortgage bond. Additionally, mortgage bonds are under even more pressure, due to concern over health of Fannie Mae and Freddie Mac ... all contributing to higher rates ahead.
Sue Woodard, loan consultant, CTX Mortgage, Minneapolis

A really ugly take on inflation and the economy from the Fed this week has taken a toll on the markets and rates have started to climb higher. The Consumer Price Index and Producer Price Index showed serious overall inflationary risks this week as well. All of this is a bad omen for rates and I expect them to move higher in the short term.
Chris Sipe, loan officer, America East Mortgage, Frederick, Md.

The U.S. government -- on purpose or not -- upgraded mortgage bonds to Treasury Class. Mortgage rates fall.
Dan Green, Mobium Mortgage, author of TheMortgageReports.com, Cincinnati

The Fed addressed concern about FHLMC and FNMA in a timely manner. It is important that FHLMC and FNMA be able to operate and borrow money at low rates. That is something different from the preservation of their equity value. I could even make a case that the Treasury Department should create a new class of debt and, essentially, buy as much FHLMC and FNMA debt as it wants with a new class of Treasury securities. This would actually be a source of profit to Treasury. It is disquieting to suggest that this be taken out of the hands of private enterprise. The question is this: Can we learn from the mistakes of the subprime mess and adequately regulate the mortgage industry? As for what rates are going to do short term, I have no idea. Bigger picture is that we have inflating commodity prices and deflating assets. Inflation may be on people's minds, but deflation is worse.
Dick Lepre, senior loan officer, Residential Pacific Mortgage, San Francisco

Inflation data continues to hammer headlines and our wallets. News this week demonstrated what we have all been feeling; prices are higher at the pump, the grocery store and anywhere else you use your debit card. Interest rates trade off of bond prices and bonds HATE inflation. Coupled with this is concern about a declining economy which could hold rates back a bit, but the overall trend is higher for those seeking a mortgage in coming months.
Jim Sahnger, Mortgage Consultant, Palm Beach Financial Network, Stuart, Fla.

Inflation is alive and well, and long-term interest rates will rise as a result.
Holden Lewis, senior reporter, Bankrate.com

Fannie and Freddie who? Inflation and economic worries will continue to yo-yo mortgage rates up and down.
Greg McBride, senior financial analyst, Bankrate.com