Why have rates gone up so high these these last two weeks? Will it go back down

Because of the governments roll in the purchasing of mortgage backed securities (MBS), and their plan to "Pull Back" the purchasing of these securities, it has made for low volume levels and thus, the bond price has to offer a higher return to attract investors.. the only way to do that is to raise the rates. Everyone has know for some time that rates were artificially low because of the high volume of government purchasing of MBS, and it was just a matter of time before the government pulled out of the market.. and here we are.. I also doubt we will ever see these low rates again.. as far as a repeat of 2007,,, that's a question for Mrs. Cleo!! .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

As the Fed shows signs of tapering its bond purchasing program, rates have been climbing from their all-time lows. They will likely not go back down to the levels we saw in the spring but it is likely they will dip down a bit in the near future. I doubt we will see another 2007 but I cannot say that with absolute certainty.

The short answer is no they probably will not go back down. The market is preparing for the federal government to stop buying the large amount of treasuries. All signs are pointing to a slow down in purchasing by the government in the near future.

The Fed is slowing down the purchase of Treasury obligations (notes and bonds), which have kept the rates artificially low. Rates may continue to increase.

To thoroughly answer this question I would have to share the entire process of how mortgages are funded although I will try to keep it simple. Mortgages are pooled with other mortgages of similar quality and loan type and then sold as bonds, these are called mortgage backed securities. Historically the private sector purchased these bonds although with the economy doing so poorly over the past couple years the US Treasury began purchasing them in order to drive mortgage rates down (QE 1,2,3). The Federal Reserve Chairman recently announced that they would stop doing this by the end of the year. This sent panic through the bond market and thus rates jumped very quickly. I have been in the mortgage business for 15 years and I feel that we will not see rates get back to their historic lows again in mine or my children's lifetime. I am licensed in Michigan so if you wish to call me feel free. Larry Lechel 260-348-7519.

That's a tough question to answer sallyd1251... Predicting where interest rates are going is much like predicting where the stock market is going. Rates are determined by the Mortgage Bond Market. The bottom line is that rates are still historically low and allow you to leverage great payments when taking a loan out on a home purchase. Best thing to do is talk to a Loan Officer about your specific situation and your financing and interest rate options. Good Luck!!

If we knew the answer to that question with certainty - Life would certainly be much easier for all of us for sure. Andrew

While no one ever knows for sure, the wheels for rates to continue going higher are well set into place, and starting to spin faster. DO NOT hold out hoping for lower rates. It is a fools move. There is little room for downward rate movement, and plenty of room for rate increases.