What is on the horizon for interest rates this year?
What will happen with home loan rates is probably the easiest prediction to make for 2010…they will move higher! The Federal Reserve’s Mortgage Backed Security purchasing program is set to expire in March of this year. We have already seen rates trend higher with the Fed’s reduced purchasing power in the market.
Even though rates are expected to move higher, they won’t necessarily do so in a predictable manner but instead will move in waves and continue to be extremely volatile (this is so much fun when this happens!). The anticipated range for rates is broad, with lows being around 5% and the highs reaching 6.5%. While rates are no longer at the historical lows of 2009, they are still incredibly low right now but they won’t be for long. If you are on the fence, act now or be prepared to pay a higher rate in the future.
By: Kelly Zitlow, Suburban Mortgage, BK #10123