Will Mortgage interest rates increase by 2011?

yeah, they're going up, it's a matter of when, not if.

this is what happens when the Federal Government meddles in the free market and the effects of all the "stimulus" spending.

The FED is competing on the market to buy securities to keep the rates down, but at the same time it's pushing the 10 yr T-Bill rates upward and mortgage rates are tied to this T-Bill rate.

At some point, the FED/Treasury's ability to "buy down" the rate in the market is going to be counterproductive. I personally thought that wouldn't happen until October/November, but as we all saw, it took place this week.

Unfortunately, since people got shocked by the rate hike, the FED's going to step in and artificially "buy down" the rate which will make the next spike even higher.

So the next option is for Treasury to print more funds to increase the supply in the market and decrease competition. But as we all know, an increase in the money supply without an increase in goods/services leads to inflation. An inflation will lead to higher interest rates.

Now to make matters worse, GM just announced Chapter 11, along with Chrysler. Unemployment numbers will most certainly rise in June and July as both companies attempt to restructure. Again, I thought GM would hang in there until the holidays, but apparently not.

So by the end of 2009, were going to have higher inflation, higher unemployment, and higher mortgage rates, all despite the effects of the FED or stimulus package which goes to show why Government should not get involved in "bailing" out companies. Had nothing been done, there would have been a sharp correction, but we'd be starting on our way to recovery now.

As the situation stands now, there's no way the Obama Administration or Congress is going to be able to spin this positively.

Mortgage interest rates will increase by 2010. Reason they will increase is that the banks can not continue to make money under the current interest rate they are at. They can make more money in the credit card business then the Mortgage business. Even though they will make it in the long run. That is my take on it and that is all i can say.

Too long to make certain yet top is the fee that the Fed lends money to the banks; it is not particular to the own loan industry, it fairly is used for credit playing cards, vehicle loans and investment money owed. own loan expenditures are "expenditures". the comparable way the cost of oil via the barrel can fall continuously yet gas expenditures boost. industry call for and furnish set expenditures in each industry. own loan pricing is achieved daily and is greater based on different investment expenditures and financial comments than on the top fee. top is used as an index on adjustable loans with the aid of fact it fairly is an extremely stable indicator in assessment to LIBOR; it has no longer something to do with pricing.

They went up this week. They could continue upwards, or drop again. No one can predict the future.

Probably, and don't know. My crystal ball broke.

No one knows. I would bet that yes, they will.