Tuesday, January 11, 2011

Mortgage rates may have bottomed out

In an analysis from the NY Times, it seems that the best opportunity to buy a home is without a doubt upon us. According to the article, mortgage rates in 2010 were the lowest in six decades, and that a recent and sustained increase may indicate that consumers can expect to pay more in the new year to buy or refinance a home.

Mortgage rates hit rock bottom in mid-November and since then fixed rates for 30-year mortgages, the most common type of home loan, have steadily risen.

Experts believe that the "The window of low rates could have left us" which means that buying now and into the Spring will probably yield increasingly more expensive purchases. The 4.17 rate last month was the lowest since Freddie Mac began tracking rates in 1971 — as well as the lowest since World War II, according to Weiss Research, a financial analysis and publishing firm.

The Mortgage Bankers’ Association, a trade group, predicts that 30-year fixed rates will inch up to 5.1 percent by the end of 2011 and reach 5.7 percent in 2012.

Read the rest of the article for more detail, but if you are looking for a home it seems more than ever the time is ripe.

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