The stock market enjoyed a strong run for most of the financial stocks thanks in large part to positive news from Wells Fargo and JP Morgan, as well as reassurances that Fannie Mae and Freddie Mac will still be able to secure mortgage loans. The financial markets have been on a roller coaster ride this year as the credit markets have taken a steep toll on corporate earnings. The rally in the stock market has pushed fixed rate mortgage loans up. This is a common reaction as investors take money out of bonds and move into equity positions. This year mortgage rates have moved up and down very aggressively and will likely continue with this pattern for the next six to twelve months. High oil prices and concerns regarding inflation are likely to pressure rates to stay high, lower guidance on corporate earnings is likely to help balance the markets and keep interest rates in a relatively stable trading range. Home owners with adjustable rate mortgage are likely to see these rates continue to increase as ARM's become less attractive as short term rates are likely to continue increasing. Fixed mortgage rates are likely to stay around or under seven percent in the near future.

7-18-2008©LowRateMortgage.com

Compare free quotes from top lenders to find  the lowest mortgage rates online