It’s been an interesting few weeks in watching the progress of Iowa mortgage interest rates. Rates have definitely been on the rise, with Iowa Average 30-year Fixed Rate Mortgage topping out at just under 6.0% in the early days of June, 2009. They have since backed off and today stand at about 5.62%.
While I’m not a mortgage loan officer, I’m told that a combination of inflation concerns as well as money rolling back into the stock market contributed to the recent rise in interest rates.
The really good news (and really there still isn’t “bad” news as far as mortgage rates are concerned) is that there remains a consensus that rates are not expected to skyrocket in the near future. The Mortgage Rate Trend Survey “asks more than 250 experts in the mortgage field about their expectations for the mortgage market.” All of the industry folks surveyed said they don’t expect rates to rise significantly over the next thirty to ninety days. See chart from Mortgage Rate Trend Survey here:
In fact, the majority expect to see a decline in rates over the next thirty days and still a full one-third expect rate declines to extend over the next ninety days.