The Bridgewaters, Massachusetts

Mortgage Commentary

As expected, mortgage rates increased slightly again last week. Rates continue to be pulled up by rising inflation concerns. Most experts see this hike in rates to continue through the summer. However, rates are still historically low. If you have not already done so, I recommend locking in now before rates rise beyond reasonable terms.

Upward pressure for mortgage rates persisted last week. With the exception of the occasional dip in rates that occurs from time to time as a knee jerk response to market news, I can't see any reason why rates wouldn't move higher long term. Rates have been mostly rising in recent weeks; however, there are limits to how far they can rise (or fall, for that matter) in the current economy.

Any downside pressure on home mortgage rates caused by last Friday's rally in Treasuries won't be felt until this week, but with the influence of other economic factors, the pressure on mortgage rates has more potential on the upside than the downside, at least at this moment.

Overall, expect mortgage rates to continue moving higher as inflation concerns continue to rattle bond markets. Inflation devalues your dollar and rates move higher to compensate for that. Expect day-to-day volatility to be the norm.

Don't lose a good rate today by hoping for a better one tomorrow. Risk outweighs reward.

• If you have an adjustable rate or need to get cash out of your home, don't wait for rates to go up even more.
• If you have found the right home to buy, secure your financing today.

Interest rates are based on numerous economic, financial and credit based factors that adjust daily. In addition, lenders can vary on qualification criteria from program to program. If you like the rate today, the safe bet is to lock. Even if rates improve, they wouldn't improve enough in the short term to make you cry about it. But if you are an ardent market bear, and accept the risk of negative mortgage headlines, and believe the economy will just get more bad news next week, and you have the money to risk, you may benefit from floating. Just remember, it always seems more painful to have not locked when you should have as opposed to locking and then watching rates get a little better.

Search today's mortgage rates anonymously. And, as always, you can call me at (508) 471-4144 with any questions about mortgage rates and to discuss your best loan options.