Bankrate.com Mortgage Trend Index (August 28, 2008)

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I am a regular participant in the Bankrate.com Mortgage Rate Trend survey and this week's survey is now available.

As a reminder:

1. The survey is for conforming loans only.
2. I welcome personal emails about purchase or refinance plans.
3. I twitter market updates a few times daily.  Follow me.

Anyway, on to the group's predictions for the next 30 days:

• 36% of participants predict rates will increase
• 28% of participants predict rates will decrease
• 36% of participants predict rates will remain unchanged

I am predicting that rates will decrease over the next 30 days, but that doesn't mean you should necessarily follow my advice when choosing whether to lock a rate, or float it.  My advice may not be appropriate for your individual situation.

From the Bankrate.com survey:

"Government intervention helps to lower mortgage rates."

I've been on both sides of this discussion over the last few weeks because there's an ongoing battle between:

1. Fannie Mae and Freddie Mac's quest for revenue
2. The government's quest to keep Fannie and Freddie's lending window open

Last week, I was pretty sure that new, mandatory loan fees would take a bite out of mortgage rates.  I'm still sure of that.

This week, however, I am sensing that the government's supporting role to Fannie and Freddie will be stronger than originally anticipated.  And, apparently, I'm not the only one that's unsure.  Check out these stock charts.

Uncertainty leads to volatility and volatility leads to heartburn.  If you're not locked in with your mortgage rate yet, consider doing it now.  Call or email me with your mortgage rate questions and don't forget to follow my market updates on Twitter.