Mortgage Rate Trends Going Up According to Forecasts

Aug. 30, 2009 - PRLog -- According to a forecast published by Fannie Mae (fanniemae.com) in August 2009, mortgage rate trends are predicted to increase each quarter between now and the end of 2010.  

Also, based on economic forecasts by Fannie Mae and the Mortgage Bankers Association (mbaa.org), the 10-Year Treasury Rate is predicted to rise, which indicates a potential corresponding mortgage rate trend with increases that could amount to about a 1% rise in mortgage rates between mid 2009 and the end of 2010.

If this mortgage rate trend holds true, 30 year fixed mortgage rates may increase to 6% or higher during this time period. Higher mortgage rates are a cause for concern because applications could slow if demand drops for home buying and refinancing, which can reduce the number of qualified mortgage borrowers, affect the recovery of the real estate market, on and raise payments for homeowners with adjustable rate mortgages.

More information on mortgage trends and rates at:  http://www.crhome.com

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www.crhome.com is a service of Capital Resource, providing current mortgage rates, trends, and information.