Will Mortgage Rates Go Up in December and January?

Posted on | December 16, 2009 | No Comments

The question “will mortgage rates go up in in December and January?” is a question that we get asked over and over again.  In all honesty, at the present time it looks as if mortgage rates are going to move higher until Federal Reserve Bank chairman Ben Bernanke has some commentary on low interest rates.  It seems that every time treasury yields start to move higher we see Bernanke or Obama on television talking about how they are going to keep interest rates down.


Eventually the market is going to set interest rates and we will see much higher mortgage rates but who knows when that will be.  Later today we are going to get commentary from the Federal Reserve meeting and I expect to hear Bernanke annouce that the Fed is going to continue to buy Mortgage Backed Securities and there is also a good chance that they could extend that program.  At the present time the program is expected to conclude at the end of March but we will see about that.

Currently the 30 year fixed mortgage rate is around 4.85% which is still extremely low when looking at historical charts.  If you want to refinance or lock in to a low mortgage rate now might be a great time to get started on that mortgage application that has been sitting on your table for quite some time.  Do not wait until the market starts setting mortgage rates because they are sure to move much higher.

Author: Jesse Wojdylo

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