Based on your review of the mortgage rate trends predict the

Based on your review of the mortgage rate trends, predict the future (within a year) rate of the 30-year fixed and the 15-year fixed rate mortgage, indicating the basis and rationale of your prediction, and the resulting impact to the mortgage industry.

Solution

The rate of 30 year fixed mortgage is 3.44% and 15 year fixed mortgage is 2.69%. If the mortgage price goes up then lenders will not cut down the rates and will not be able to attractmore business. We will have mortgage lenders ssume a more competitive stance and the bond investors will aim at higher yields which can get onmortgage backed securities. By this way the mortgage rates will come down.