My New Blog

According to top predictors such as Bankrate.com and Freddie Mac, mortgage rates will remain low in 2012.  Rates may even fall to new lows early this year, especially once the European debt crisis hits a peak from a gradual increase.  Great news for homebuyers and the economy! 

"We may even spend the entire year below 5%,” said Greg McBride, senior financial analyst for Bankrate.com, referring to the average interest rate for a 30-year fixed-rate mortgage.

Where have you been if you haven't heard......rates are sitting at record lows!  The 30-year fixed-rate mortgage averaged 3.91% for the week ending Jan. 5, according to Freddie Mac’s weekly survey of conforming mortgage rates. That ties the record for the lowest rates that have been in the history of the survey.

By the way, did you know....the highest average was 18.63% set in 1981, according to Freddie Mac.

What does all this mean to the home buyer and/or seller?  The low-rate environment means that even people who have been improving their credit quality for the past five years may have a shot at scoring some of the lowest mortgage rates in history — and they may add sales to the housing market in the process

When will rates rise?  In general, the financial troubles in Europe, combined with the Federal Reserve’s pledge to keep short-term rates on hold at least through 2013, will keep mortgage rates from rising significantly.  But whereas rates fell in the second half of 2011, they are expected to rise at least somewhat during the second half of 2012.

“Operation Twist is scheduled to remain in effect until June,” Nothaft said. The intent of Operation Twist, or the Federal Reserve’s Maturity Extension Program, is to push — and keep — long-term interest rates low, which means rates should stay low for the first half of the year, he said. The Fed plan, announced in September, involves buying long-term securities and selling $400 billion in short-term debt.

Let's talk more about mortgage rates, buying, and selling real estate.  Call a Bodin Realtor today!