Bankrate analyst sees mortgage rates remaining low
Mortgage rates are likely to remain low as long as the U.S. is battling a sluggish economy, but the nation could see a slight uptick in rates if Treasury yields edge higher, according to one financial analyst with Bankrate. Greg McBride said it's unlikely mortgage rates will be an impediment for well-qualified borrowers, because the "weak economy will keep a lid on mortgage rates." "Mortgage rates are well below 5%. Even with the downgrade, I expect mortgage rates are going to stay below 5% as long as everyone is consumed by economic worries," he said. While Standard & Poor's downgrade of the U.S. debt rating riled financial markets Monday, McBride said mortgage rates are effected more by the overall health of the economy, which is in a state of distress over weak employment data and abysmal consumer confidence. "The downgrade didn't tell us anything we didn't already know, we've had a barrage of poor economic data and that's really put the economy front and center," McBride said. "As long as people are worried a recession is right around the corner, you are no going to see an increase in mortgage rates." Write to: Kerri Panchuk.