Where are Mortgage Rates Headed?

Just reported drop in 30yr rates…

30-year home loan rates drop to 5.09 percent
Associated Press

Rates for 30-year home loans inched downward last week, the first decline in a month, but remained above last month’s record lows.
Real Estate

The average rate on a 30-year fixed mortgage was 5.09 percent last week, down from 5.14 percent a week earlier, mortgage company Freddie Mac said Thursday. Read more: 30-year home loan rates drop to 5.09 percent.

But… Some forecasts call for increases…

Forecast calls for higher mortgage rates
BY SUSAN TOMPOR freep.com

Most economists expect the Federal Reserve to keep short-term rates low through much of the year. But mortgage rates, which began an uptick late in 2009, are likely to be a different matter.

“The risks are clearly tilted toward an environment of higher rates,” said Greg McBride, senior financial analyst for Bankrate.com.

For some consumers, such forecasts mean that it’s more essential to try to refinance an adjustable-rate mortgage into a fixed rate sooner rather than later in 2010. read more Forecast calls for higher mortgage rates | freep.com | Detroit Free Press.