If you’ve followed the real estate and mortgage news over the past few months, you’ve noticed that mortgage interest rates have risen quite a bit lately. Due to the slow housing market and sluggish economy, mortgage interest rates were recently at their lowest than they ever have been. The probability is that the interest rates might not be this low again.
The million dollar question is what will happen to mortgage interest rates in the future Nobody knows for sure, but the leading “experts” from the Mortgage Bankers Association are predicting that mortgage rates for Katy Texas Real Estate, for instance, will rise each quarter throughout 2010. Things can change and the economy can take another twist and perhaps the interest rates can go back.
The average interest rate for conventional 30-Year fixed mortgages during Q1 of 2011 will be 5.2 percent as the MBA predicted. Moreover, this rate will increase 1/10th to 5.3 percent in Q2, another tenth in Q3, and Q4 will have an average mortgage interest rate at 5.5 percent.
From a historic standpoint, a 5.5 percent mortgage rate is still pretty phenomenal, but it isn’t nearly as good as the current average rates of 4.97 percent. The MBA further predicts that by the end of 2012.
These rates are just predictions. These predictions can be right or completely inaccurate since the real estate market can change anytime. There is something that is clearly stated – mortgage interest rates are unbelievable right now. Thinking of refinancing in the future, do it now.
If you’re planning on buying Denver homes with mortgage financing, this might also be the most affordable time to buy.At present, 70 percent of the US metro areas is more reasonably priced to buy than it is to rent. Home prices could still drop a bit depending on the area, but the union of low price and low payment may not ever get better than they are now.
