30 Year Mortgage Rates 2010
The 30 Year Mortgage rates 2010 is upon us with rates at near historic lows. They will not stay there for long. Since the beginning of December 2009, the 30 year fixed rate mortgages have been edging upwards. The second week of December saw the average 30 year fixed rate at 4.81% and the following week it rose to 4.94%. This all followed the rate of 4.71% from the first week in December. That rate was the lowest in nearly 40 years.
Because rates have been low for most of the year, many homeowners are refinancing their mortgages when they can find a financial institution that is making loans. The new housing loans are still sluggish because of the economy, so it is the refinancing that is starting to push the rates higher. The more homeowners that seek to do this, the higher the demand for new loans will be which is fueling the rise in the interest rates.
The Federal Reserve still has the prime rate below 1%, so it is the banks that are deciding to raise their rates on their own. This trend is predicted to continue with the 30 year fixed mortgage rate with the 5.00% barrier being broken in the last week of December with a rise to 5.05%.
The Washington Post reported on December 26, 2009 that the Deputy Chief Economist from Freddie Mac Amy Crews Cutts is predicting the interest bank rates to rise above 6% before the end of 2010. Because of this, the 30 Year Mortgage rates 2010 will continue to rise throughout the year. If you are thinking about refinancing your home for the lowest rate, then the sooner the better is advised.
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