Mortgage Rate Trend Index

Although the Wall Street bailout provided a temporary lift to the stock market, weak economic data and grim outlooks continue to pressure stocks downward. Investors have turned to safer instruments, such as mortgage-backed securities, which have pushed rates lower. Also, news that many companies will be forced to lay off a greater number of employees than originally expected in December has caused bonds to rally even more.
Ryan Kennelly, Mortgage banker, Residential Mortgage Services, Inc., Bedford, N.H.

Lower rates as stocks test lows.
Barry Habib, CEO, Mortgage Market Guide, Holmdel, N.J.

With the TARP shift in focus away from mortgages and into the asset-backed market (as a way to improve access to car loans, credit cards and student lending), expect the influence of mortgage relief to be short lived. The good news is we are seeing prices on homes going lower and rates are expected to also head lower as the bond market rallies. The bad news is we are expecting a continued decline in consumer spending, which makes up two-thirds of (the) GDP, and consumer confidence is at its lowest level since at least 1967, when records began.
Cameron Findlay, chief economist, LendingTree.com, Charlotte, N.C.

The 10-year Treasury is 3.67 percent today, which is down 9 basis points from last week. It has been a bumpy week for Treasuries and mortgages alike. There is now no doubt we are in a recession and long term rates should continue to fall. The recent government intervention in mortgage securities will keep driving rates down as they buy mortgages and put liquidity into the market.
Mitch Ohlbaum, president, Legend Mortgage, Los Angeles

Barring action by the government or the bail-out adminstrators, rates should remain within the current range. The steady barrage of weak economic data should bode well for mortgage bonds, yet there appears to be a floor that has not been breached.
Dan Dowling, senior mortgage adviser/president, United Mortgage Capital Corp., Altamonte Springs, Fla.

With unemployment data showing increased numbers, Black Friday numbers projected to be lower than expected and continued negative consumer sentiment, rates will decline slightly.
Steve Levitt, vice president of mortgage lending, Guaranteed Rate, Chicago

Government and lender intervention should stabilize housing, helping rates to fall.
Dan Green, Mobium Mortgage, author of TheMortgageReports.com, Cincinnati

You want to know what interest rates are going to do? Back up. We are going through another one of those serious angst weeks regarding the economy. FHLMC & FNMA are making an announcement about helping people to refinance as an alternative to foreclosure. Programs such as this have proved to be very difficult to carry out in practice. The U.S. auto industry is having an existential crisis and the folks in D.C. are contemplating 1) lending them a bunch more money and 2) allowing California to regulate emissions so that the folks they are lending money to are the ones which cannot produce the cars to meet these standards. The notion of making fuel-efficient cars is hardly new. I feel as if we are back in 1974 and nothing has changed. Want to help the U.S. auto industry? Ban all cars which get greater than 20 mpg. I have no idea what rates will do. The issue really is trying to ascertain what the buyers of mortgage pools see the risk as and that is something I don't even want to think about.
Dick Lepre, senior loan officer, Residential Pacific Mortgage, San Francisco

Slow but steady improvement in the credit markets coupled with significant economic weakness spells lower mortgage rates. Take advantage of the opportunity to lock as rates can change in a big hurry.
Greg McBride, senior financial analyst, Bankrate.com

We're toward the low end of the recent range of mortgage rates.
Holden Lewis, senior reporter, Bankrate.com