This is a very difficult question to answer because to be quite honest no one can ever know for sure what is going to happen and what interest rates are going to do. However, many experts can predict what they think they are going to do with a fairly good deal of accuracy most of the time. Interest rate have began to climb over the past year or two and they are expected to continue this upward trend for the near future.IF you follow the investors, they are currently betting on lower rates as they are investing in the fixed long term portfolios as of Feb 2007. You can see this in the adjustable to fixed interest rates currently available.
Mortgages are a financial commodity similar to stocks, bonds, and mutual funds. Typically mortgage backed securities determine mortgage rates. However, consumer price index, housing, employment are also factor in mortgage rates.
Mortgage interest rates are dependent on many factors, so some may predict in the short term what will happen. These will be dependent on unemployment reports, Gross National Product reports and other key financial indicators. The long term forecast are very difficult as some of these factors are dependent on possible unforeseen national and global events.
Long term interest rates, such as those quoted on 15 and 30 year fixed rate mortgages, are currently very closely linked to the yield of the 10 year treasury note.
