Mortgage rates expected to remain low in the next year
12/13/2010
By Credit.com Staff
The refinance market experienced a slight renaissance in November as mortgage rates fell to lows not seen since the 1950s, and though rates have trended upward again over the last few weeks, they aren't expected to climb much higher over the next 12 months, according to Freddie Mac chief economist Frank Nothaft.
The Federal Reserve Board is not expected to increase the number of bonds it buys to depress rates and stimulate housing growth for most of 2011, meaning that home loan rates will likely stay near where they are now, Nothaft said. While there may be a slight increase in the rates for 30-year fixed rate mortgages over the next 12 months, it's expected to be minimal, staying below 5 percent. Similarly, initial rates for five- and one-year adjustable rate loans will probably remain below 4 percent.
Consumers who refinanced when rates were at their lowest were likely to save between hundreds and thousands of dollars on their monthly mortgage payments.
