Home Mortgage Refinance Loan Rates – Interest Rate Trends and Predictions for 2011 Quite Varied from Analysts
Posted on | December 27, 2010 | No Comments
As we round out 2010 and head into 2011 many people want to know what mortgage interest rates are expected to do. With home mortgage refinance loan rates at attractive levels for much of the last two years there are many Americans who have refinanced to save money. Even though this is the case there are still many more homeowners that are looking to cut their mortgage payment even lower.
For much of the last two years 30 year fixed mortgage rates have been between 4.0% and 5.5%. At the beginning of November 2010 we saw 30 year fixed mortgage rates at all time lows around 4.0%. This did not last long as the 10 year treasury rate yield moved up quickly which, in turn, pushed mortgage rates higher as well.
Unfortunately, making a 100% accurate mortgage interest rate prediction is very difficult as the Federal Reserve Bank has done everything possible to keep interest rates low. The Federal Reserve Bank Chairman, Ben Bernanke, has stated multiple times that they would not hold interest rates low if the economy starts to recover greatly.
There are some signs that the economy is recovering as the stock market is no back above the pre-Lehman Brothers collapse. This is a great sign for the growth of the overall economy but the unemployment rate is still lagging. With an unemployment rate above 9% it is hard for many American households to save money.
By looking at mortgage interest rate trends it is quite obvious that we are still very close to all time lows. Never before in the history of the United States housing market have we see 30 year fixed mortgage rates under 5% for such an extended period of time. It will be very interesting to see how much longer this lasts as the Fed may ease up on their policies to keep interest rates near the lowest levels in history.
Author: Alan Lake
Tags: Home Mortgage Loan Rates > home mortgage refinance loan rates > Interest Rate Predictions > interest rate trends > Mortgage Rate Predictions > mortgage rate trends
Comments
Leave a Reply