Mortgage rates on the rise again.
Posted on | December 26, 2009 |
After mortgage rates dropped to record lowsa few weeks back, they really had little room to keep falling. It should come as no surprise then that we now see rates on the rise again. According to Bankrate.com’s national survey of lenders, the average 30 year fixed rate jumped 9 basis points up to 5.13%. That rate is still very low by historic standards, and still lower than they were a year ago at 5.43%. The average rate for a 15-year fixed rate mortgage also rose, though by only 6 basis points up to 4.53%.
The look ahead.
Analysts are hoping that 2009 will become the year that residential real estate bottomed and began to turn around. Recent rebounding home sales have helped to support that view, but things may turn for the worse again in 2010. Fiserv, the financial analysis firm, predicts that home prices will drop another 11.3% nationwide my the middle of 2010, and Moody’s Economy.com issue a forecasting expecting a 5-10% drop.
The problem.
Several factors are seen as contributing to the potential protraction of the housing slump into 2010. One factor is that as the real estate market begins to pick up, a new rush of homeowners who have been waiting to put their homes on the market will do so, thus creating even more supply for the limited demand. Another factor is the next wave of foreclosures, that will also drag prices downward. And finally, there is the double whammy of high unemployment and the expiration of the home buyer tax credit that will further weaken demand.
The trend.
The upward trend in mortgage rates is expected to continue through 2010 even despite the above negative factors in the real estate market. Most of the reasoning for this is that the Federal Reserve is expected to stop its purchase of mortgage backed securities, which has been credited with keeping mortgage rates lower than they would be otherwise.
- Still No U.S. Recession.
- 5 Ways to Improve Your Credit Score.
- 4 Tips For Applying For a Mortgage
- Are reverse mortgages a Scam or a Good Deal?
- How to Get Out of Trouble in the Real Estate Market
- The Master List - 66 Ways to Save Money
- Understand Mortgage Options Before House Hunting
- Prosper's People-to-People Lending Market Survey
Comments
One Response to “Mortgage rates on the rise again.”
Leave a Reply
Popular Posts
Featured Links
Need Help With your Debt?
Incredible DealsRecent Posts
Categories
Archives
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
Sponsors
Scan2Contacts
Search
Get Updates
by Email
Recent Comments
Tags
401(k) 529 savings plan Auto Insurance bailout Banking blogging Building Wealth college savings Cramer Credit Credit Cards Credit score Debt debt settlement Economy Employment FDIC foreclosure getting out of debt How To Income Insurance Investing Life Insurance money Mortgage Rates Mortgages news Opinion Rant Real Estate Recession Retirement Review Reviews Saving Saving Money Savings Scam spending Sponsored Stock Market Stocks Taxes TipsContact
Blogroll
Blog Catalog Visitors
Disclaimer
Unique visits since 2008:
December 27th, 2009 @ 7:56 am
[...] the surface, it seems like a perfect time to buy a new home - Despite a recent rise, mortgage rates are still historically low, and you could qualify for a $6,500 tax [...]