The predictions of mortgage interest rates seem to be moving higher for the month of August. The upward pattern that began in January for the 10 year treasury rate has continued for the first part of the year. Although the rate did move up and down marginally, the general direction still seems to be trending higher. This trend will result in higher mortgage rates.

Although the current rate of 5.40% is still attractive, that is a sharp increase over their recent low spot. The lowest rate of 4.8% occurred last May and rates have consistently shown higher than 5% ever since June of 2009. Without some significant downward activity in the 10 year treasury rate yield it is unlikely to see an interest rate under 5% in the near future.

For those that are still debating about refinancing their current mortgage or possibly purchasing a home, take action now to finish the mortgage process. Waiting a few more months may mean that your rate could climb to 6.5% or even 7%. With that much raise in interest rates your corresponding payments would increase by a few hundred dollars. Considering the current economy and its troubles, the majority of borrowers cannot afford such a hike in their mortgage payments. And history has taught us that as mortgage rates climb up, home prices come down. Is it possible to see even more decreases in home prices? Only time will tell when the best time to purcahse a new home is, but it may be two late by then to take advantage of the current low rates..

Krista Scruggs is an article contributor to Lender411.com. Lender411.com will locate the best mortgage rates in your area by connecting you instantly with up to four qualified lenders. Visit Lender411.com today to compare mortgage rates instantly.