Mortgage rates are predicted to rise slightly over the next two months, according to a forecast released today by HSH.com.
The company, which provides mortgage rate comparisons, believes the popular 30-year fixed-rate mortgage will hover between 4.50 percent and 4.90 percent in June and July.
Mortgage financier Freddie Mac currently has the 30-year averaging 4.49 percent, so apparently they see this as the bottom for mortgage rates.
As far as adjustable-rate mortgages go, HSH sees the 5/1 hybrid ARM, which is fixed for the first five years before becoming annually adjustable, ranging from 3.30 percent to 3.75 percent.
Again, Freddie Mac has the 5/1 ARM at 3.28 percent, below their prediction.
Does this mean mortgage rates have hit bottom?
It’s doubtful – there’s still plenty of bad economic news ahead, and as we all should know, bad news means lower mortgage rates.
HSH did say they expect an accumulation of poor economic data in coming weeks, followed by better news in a month or so, at which point rates will probably rise some.
There’s also QE2, which is expected to push interest rates higher when it ends this month.
Regardless, mortgage rates are close to record lows, and are certainly very low historically, and likely will be for some time.