Over the past several days mortgage rates have been on a see saw.
The likelyhood of mortgage rates heading up hinge on the the following IFs
If the fret over oil prices continues to subside and gas prices follow
If violence in Iraq settles
If shoppers continue snapping up homes and buying summer clothes.
If home sales continue to surg
If job claims decline
If manufactoring picks up
If mortgage rates continue steady
If real estate financing and resultant refinancing remains robust
If money saved from the past three year home loan refinance wave continues to go undepleted...
...if so rates can be expected to continue heading up.
Other Factors causing the see saw effect seen over the past week could bring interest rates down and trigger another refinance wave are little improvement in the Mid-East situation. Little imrovement in oil and gas prices. A significant increase in unemployment levels. An ongoing surge in home sales over the next six months would open the way for potential refinancing.
For now however home refinancing has decreased significantly as rates rise. Interest rates should stabilize and resultant home refinancing and home buying should move to modest levels but steady.