The Mortgage Bankers Association released its forecast on mortgage interest rates recently and the verdict was that rates, including interest rates on government backed mortgages, are likely currently near their bottom and will be rising in the near future. If you have considered refinancing we recommend you contact us to look into your options now before rates head back up.
Here is an excerpt from a recent MarketWatch piece:
Mortgage rates may be as low as they’ll get — rates are on course to rise, slowly moving toward 5% by the end of next year, according to the Mortgage Bankers Association’s economic forecast, released Tuesday at the group’s annual convention here.
The group predicts rates on the 30-year fixed-rate mortgage will average 4.4% in the fourth quarter of 2010, increasing to a 4.7% average in the first quarter of 2011, and climbing to 5.1% by the end of next year. That’s barring any “blockbuster” announcement from the Federal Reserve next month, said Jay Brinkmann, chief economist of the MBA.