Analytists Comment On Today's Mortgage Rates

Fed is facing key policy decision in this current mortgage rates. The sharp increase in both U.S. bond yields and mortgage rates presents the Federal Reserve with two key positions to take. Fed needs to decide if it should increase its purchases of Treasuries and whether it should push back against expectations of early interest rate rises. FT has a good coverage on Federal reserve's possible actions in relation to mortgage backed securities.

Johnathan Martinez in today's Examiner analyzes how the rising gas prices and current mortgage rates stall the economic growth. "The slow down is being compounded by another big faltering sector, mortgages. With the mortgage crisis still looming, interest rates have gone up quite substantially in the past 6 months. People living paycheck to paycheck can't even think about buying a home until rates drop to at least 5%. Interest rates have risen because of an increase in consumer confidence, and a national mindset that the recession might be ending soon. The increase might be too soon though, and we might see a backslide into a deeper recession in the coming months," Martinez writes.

Skapocalypse tweets that he doesn't like the fact that mortgage interest rates are headed back up again. However, Deerlum's tweet is more in the positive direction. She says "mortgage rates were going down on Friday. Hope the rally continues this week."

Many analysts will watch the Federal Reserve this week to hopefully buy some mortgage backed securities this week in an effort to bring mortgage rates back down. This may possibly pull the trigger on a rate lock.

What interests the observers is that the mortgage rates exploded upward despite the recent government efforts to subsidize the housing markets and home purchases. This is why the rising current mortgage rates leave today's refinancers behind.

This may mean that the days of rock-bottom housing prices and mortgage rates may be reaching an end. As today's mortgage rates are starting to climb the home buyers now have only 5 months left to claim the $8000 dollar credit that the government program is set to encourage the first time home buyers.