A Steady Increase in 2010 Mortgage Rates

A Steady Increase in 2010 Mortgage Rates

Market trends in 2010 are showing a steep increase in mortgage rates. While consumers have been accustomed to record-low mortgage rates in the past few years, slowly,

The majority of economic experts calculate that mortgage rates will fluctuate between 5.5-6% for the rest of the year. This is calculated using the 30-year conforming rate.

Jay Brinkmann, chief economist for the Mortgage Bankers Association, has commented, “Rates will continue to rise until the housing market stabilizes itself without massive government intervention.”

A Rule of Thumb

The projections will see about $70 added to mortgage payments for 30 year fixed rate mortgages on houses valued between $150,000-$200,000. However, it’s also true that home prices are falling throughout the nation. We’re seeing home prices drop anywhere from 5-10%. 

This decline in home prices may offset the rising mortgage costs. Of course, if you can still lock in a low mortgage, you may be able to get the best of both worlds.

Of course, mortgage rates change all of the time, so while economists are able to give long term predictions for the entire year, it’s important to check rate fluctuations on a weekly basis. There are several sources that can guide economists and consumers regarding prevailing mortgage rates. One such source is the First Quarter Residential Vacancies and Homeownership Report, which helps compare vacancy rates to home purchases.

Evaluate Common Effects on Mortgage Rates

Consumer confidence ratings also guide mortgage rates, so if possible, analyze these factors. There are a variety of online sources that provide information about current mortgage rates. Be sure that you’re getting your information from a trusted source. Some websites that purport to offer current rates are actually just shills for other companies.

Still, you can find a lot of great information online if you know where to look. Don’t be discouraged by high mortgage rates. You can always find a good deal somewhere. Good credit and a high down payment will help you afford your house even in a high mortgage rate economic climate.

You should proactively seek the lenders that will create loan offers that are affordable, honest, and beneficial to your home.