Although many real estate experts predicted that interest rates would start to rise at the beginning of 2011, for now, they’re hanging back. According to Freddie Mac’s weekly rate report, a 30-year fixed mortgage from the GSE averaged a rate of 4.71 percent. That is down slightly from last week some experts forecast rates to go lower still by the end of the month. 15-year fixed rates averaged 4.08 percent, down from 4.13 percent the week prior.
Frank Nothaft, Freddie Mac’s chief economist, credited the December employment report, “which was weaker than the market consensus forecast” and indicative of a “labor market still in a sluggish recovery” for lower bond yields. Mortgage applications were on the rise (2.2 percent) in early January, and refinancing applications, which had been predicted to slow in the New Year, are also up by 4.9 percent. Last week, almost three-quarters of all mortgage applications were re-fi applications.
Do you think that mortgage rates are still headed up, or do you think that recent changes in the economy will keep them low?
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