There has been absolute panic in the mortgage market lately and putting our fingers on the pulse of the mortgage rates has been very hard due to the markets volatility. So many different things are happening in the markets right now that are effecting interest rates. Some should cause mortgage rates to rise and some should cause mortgage rates to drop this November. Believe it or not even outside factors like the presidential election this November will cause mortgage rates to move.

November 2008 Mortgage Rate Predictions Img1

Rates Will Be Flat Overall For November

All this uncertainty in the mortgage industry actually creates a lot of indecision in investors and home buyers. Technically and emotionally, we do believe that rates for the month of November this 2008 with remain largely unchanged. We don’t see mortgage rates either rising or falling looking ahead this November.

Not everyone agrees with us though. Many see the recent federal reserve rate cut that happened last month and expect rates to rise slightly. We believe that this scenario is unlikely. If rates do rise I think it would be fair to contribute a rate increase this November to further eroding consumer sentiment.

On the other side of the coin, others see a lack of demand for mortgages this November 2008. We can’t argue with that. However, we don’t think the lack of demand will cause rates to go up.

One important note is that banks are not quickly handing out the billions of dollars that the federal government gave to them for mortgage lending. The banks are still holding the purse strings very tightly and demanding more from their mortgage applications. Expect this to change in due time.

We expect upswings in the mortgage rate this November to quickly become downswings. Overall, we do believe we will exit November with relatively flat mortgage interest rates.