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Mortgage Rates Headed Higher This Year

mortgage-rates-headed-higher-this-yearWe have enjoyed near record low mortgage rates for some time now, probably the only benefit of the credit crisis throwing the economy into a deep recession, the worst since the early 1980's.

Even though 10-year Treasury notes have been going up recently, mortgage rates have drifted down. There are several government programs that were created to drive mortgage interest rates down.



Find Current Mortgage Rates Here

Now that we are coming out of a recession, the economy only contracted by one percent in the second quarter, the FOMC might be eager to raise interest rates before the end of the year or early next year. Once the Fed starts to raise interest rates, you can bet mortgage rates will go higher.

Mortgage rates have been hovering just above 5.00 percent for the past several months, although during the week of May 18, 2009 we reported conforming 30-year mortgage rates at 4.84 percent. The recent high for 30-year conforming rates was 5.71 percent set June 15, 2009.

15-year mortgage rates have been in a range of 4.50 percent to 4.75 percent the past several months. 15-year home mortgage rates also set a high on June 15, the rate got above 5.00 percent at 5.21 percent. The recent low was set on May 18th, the rate was just above 4.50 percent at 4.55 percent, not much lower than today's mortgage rate of 4.80 percent.

Several banks are offering mortgage rates below the national average rates. Wells Fargo is currently advertising home mortgage rates of 5.375 percent for a 30-year fixed mortgage. Wells Fargo is also offering 15-year mortgages at 4.75 percent, just below the national average 15-year rate. Their five-year adjustable mortgage rate is even lower at 4.25 percent.
 
Author: Brian McKay
August 7th, 2009