Mortgage rates may have bottomed out

TRD New York /
Dec.December 27, 2010 10:14 AM

A sustained increase in mortgage rates over the past several weeks could signal the end of the historic lows seen in 2010, analysts told the New York Times. The popular 30-year fixed-rate mortgage hit 4.17 percent on Nov. 11, the lowest in mortgage giant Freddie Mac’s nearly four-decade history of tracking rates. But since then, rates have ticked upward to 4.83 percent, which the government-backed company recorded Dec. 16. Meanwhile, the Mortgage Bankers Association forecasts an increase in 30-year fixed rates to 5.1 percent by this time next year and 5.7 percent two years from now. According to Columbia University Business School real estate professor Christopher Mayer, “the window of low rates could have left us.” But even though buying or refinancing a home is beginning to grow more expensive, the cost of a mortgage in the U.S. is a far cry from what it once was, as rates have sat between 6 and 8 percent for most of the decade. [NYT]


Related Articles

arrow_forward_ios
A homeowner in New York was about three times as likely to have a mortgage in forbearance, an analysis by Kroll found. Being self-employed doubles the likelihood. (iStock)

TRD Insights: NY, NJ homeowners more likely to be in mortgage forbearance

TRD Insights: NY, NJ homeowners more likely to be in mortgage forbearance
(Credit: iStock)

Six weeks, six jumps in mortgage applications to buy homes

Six weeks, six jumps in mortgage applications to buy homes
Despite record-low interest rates, tightened mortgage lending standards which may hamper the economic recovery. (iStock)

Tightening mortgage market threatens economic recovery

Tightening mortgage market threatens economic recovery
A rendering of 1998 Second Avenue in Harlem and Peter Fine (Credit: GF55 Architects)

Peter Fine inks $70M construction loan for Harlem resi project

Peter Fine inks $70M construction loan for Harlem resi project
(Credit: iStock)

Loan applications to buy homes rise for fifth week

Loan applications to buy homes rise for fifth week
(Credit: iStock)

TRD INSIGHTS: MBA finds 8% of home loans in forbearance

TRD INSIGHTS: MBA finds 8% of home loans in forbearance
(Credit: iStock)

Applications to buy homes rise for fourth week with New York leading the way

Applications to buy homes rise for fourth week with New York leading the way
(Credit: iStock)

TRD Insights: MBA finds 8% of home loans in forbearance

TRD Insights: MBA finds 8% of home loans in forbearance
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...