Rate Forecast: 

No one (not even your brother-in-law) knows where interest rates will be tomorrow, next week or even next month. But we can try to forecast based on experience and carefully watching economic indicators. This forecast is our “best guess” .

With rates at multi-year or near historic and all-time lows, it’s tough to expect that they have considerable space to decline much from here, especially in the face of a modestly improving economic climate and improving corporate earnings picture.
Rates that were lower earlier this year were fueled by an apocalyptic economic state and near-term view forward. While this has improved, investor lack of appetite to take risk, weak economic growth, and the low near-term prospects for inflation should serve to keep a lid on any serious increases, too.
We expect mortgage rates to likely wander in a range from about 5.00% to 5.50% on the Conv. 30-year fixed, but to be choppy in that range as the stock and bond markets search for new trend line.

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