No one can accurately predict how interest rates will fluctuate. However, fixed rates are still near historic lows and if you are considering refinancing out of an adjustable rate mortgage now is a great time to act.

Mortgages are a financial commodity similar to stocks, bonds, and mutual funds. Typically mortgage backed securities determine mortgage rates. However, consumer price index, housing, employment are also factor in mortgage rates.

Mortgage interest rates are dependent on many factors, so some may predict in the short term what will happen. These will be dependent on unemployment reports, Gross National Product reports and other key financial indicators. The long term forecast are very difficult as some of these factors are dependent on possible unforeseen national and global events.

IF you follow the investors, they are current;y betting on lower rates as they are investing in the fixed long term portfolios as of Feb 2007. You can see this in the adjustable to fixed interest rates currently available.

Long term interest rates, such as those quoted on 15 and 30 year fixed rate mortgages, are currently very closely linked to the yield of the 10 year treasury note.

Although there are many things that affect interest rates, they typically move up and down in a cycle. A good mortgage planner will be able to explain this to you and give you an idea where interest rates will be. But no one can accurately predict interest rates with certainty.

Interest rates in CA are expected to rise in mid-summer. Contact your Mortgage Consultant at 310-878-9081 or info@mortgagetipshome.com immediately to get a free consultation on whether now would be a good time to refinance than later.