30 Year Fixed Mortgage Rates – JP Morgan Chase Predicts Higher Loan Rates?
Posted on | February 10, 2010 | No Comments
Recently, the CEO of J.P. Morgan Chase, Jamie Dimon, predicted that there will be higher interest rates in the near future. At the present time 30 year fixed mortgage rates are around 4.85% but this is likely to end in the spring of 2010. J.P. Morgan stated that they are going to change their business strategy to benefit from a higher interest rate environment.
Many analysts have predicted that the 30 year fixed mortgage rate is going to start moving higher in the spring of 2010 because the Federal Reserve Bank is going to stop purchasing mortgage-backed securities. As of now, the Federal Reserve Bank plans to stop buying mortgage-backed securities at the end of March 2010.
If, in fact, they do stop this purchase program you are going to see mortgage rates move up at least .5% to 1%. Just recently we have heard mumblings that they could extend this program a little while longer. It was initially expected to expire in December of 2009 but was extended three more months to help keep interest rates low.
It will be very interesting to see what happens with 30 year fixed rate mortgage rate over the next few months. If J.P. Morgan and Jamie Dimon are correct you can expect to see mortgage rates move much higher than the psychological 5% mark.
Author: Tiffany Mann
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