Are Mortgage Rates Going Up?
February 23rd, 2010 categories: Mortgages & Finance
Yes. At least that’s what a lot of experts are saying.
Get Ready for Higher Mortgage Rates- CNN
Marketwatch.com’s Steve Kerch predicted as much in October 2009, saying “Housing Could Take a Double Dip Down in 2010.”
According to David Lowman, CEO of Chase Home Lending, ” if the Federal Reserve ends its purchases of mortgage-backed securities…we’re going to come to a pretty hard stop. We’re likely to see a much smaller mortgage market after the second quarter and later in 2010.”
Which is exactly what the Fed plans to do beginning March 31.
However, the Fed announced these plans last year and rates still haven’t gone up. Why?
CNBC’s Steve Liesman explains:
Anecdotally, I’ve heard from lenders that a lot of buyers have been antsy to lock in their loans now. Like farm animals before a tornando, maybe they feel it coming.
Yeah the timing is bad since they so desparately wanted to rebuild the housing industry, and only after a few months they jacked the rates back up. To be honest I didn’t even think a 4% rate was impressive.
Great post! These are necessary things to keep in mind, it’s usually simple to forget regarding the simple things when you get consumed by a project.
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