As a Los Angeles Real Estate agent, I receive numerous weekly updates from a variety of top notch mortgage lenders.   One of my favorites continues to be from Floyd Walters, owner of BWA Mortgage.  His Mortgage Facts are simple and easy to understand.

Fact #1:  Mortgage Rates remain about .50% higher than they were a week ago.  A 30 year fixed rate is now in the 5.50% range.  On the bright side, that is still almost one full percentage point lower than a year ago!
 
Fact #2:  There was no "one event" that moved rates higher this time.  Often, a movement of rates by this much in a short period of time is preceded by an event.  For example, in the past, Mr. Bernanke of the Federal Reserve could have made a comment, or a particular report about the economy comes out and can move the market, but no single event took place this time.
 
Fact #3:  The main reason for the increase in mortgage rates seems to be a market feeling that maybe we have seen the bottom of the recession.  If that is the case, nobody wants to get stuck holding 30-year mortgages near fifty-year lows so they sell.  Additionally, if the economy is recovering (or at least not bleeding as badly) investors focus more on the purchase of stocks rather than bonds and mortgage backed securities.
 
Fact #4:  I don't know if rates will drift back down.  There are a lot of charts, indicators and opinions but no one really knows.  If you had to make me guess I would tell you my heart says there is some room for improvement; but I learned long ago that my best guess is right about as often as the economic experts, and that is only about 50% of the time.

You can sign up for Floyd’s weekly update here