Mortgage Rates Might Not Be Low For Long.....

According to REALTOR Magazine, the near-record low mortgage rates seen during the past few weeks may not be around too much longer.

Signs of improving economic conditions could lead Federal Reserve Chair Ben Bernanke to RAISE key interest rates, which would drive up mortgage rates, according to Chief Economist at Pierpont Securities LLC, Stephen Stanley.

Evidence includes more consumers are paying their bills on time. Past-due accounts at American Express declined 34% compared to a year ago. Target Corp., reported its lowest delinquency rate in two years during the second quarter.

Another sign of economic improvement, fewer banks reported tightening lending standards in the month of May, one reason consumer borrowing rose for the second time in three months.

"If lending standards start to stabilize, that will be another reason to remove the emergency measures, including the zero rate", says Jay Bryson, Sr. Global Economist at Wells Fargo Securities LLC in Charlotte, N.C., whom formerly worked at the Fed in Washington.

Until next time -- Live Aloha!! Ciana

Source: Bloomberg, Bob Willis & Anthony Feld, May 28, 2010