Mortgage Rates on the Rise, But Still Near Historic Lows
October 13, 2011 (www.bankrate.com) Via Paul Soule, Coldwell Banker Home Loans.
Mortgage rates climbed this week after investors became less pessimistic about the financial crisis in Europe and the employment market in the United States. But rates remain near all-time lows and are expected to stay at those levels at the expense of the economy
If you missed the boat on locking a rate when rates reached another record low last week, there’s no need to lose sleep over this week’s increase. It is unlikely rates will continue to rise, and some economists say they expect them to stay low for months to come.
The upward trend is not expected to last. The rate on 30-year fixed mortgages isn’t expected to rise beyond 4.5 percent until late 2012, according to the MBA’s forecast. Of course, a shift in the economy or any major event that affects the global markets could change that projection in minutes.
A year ago, the MBA predicted $996 billion in home loans would be originated this year. The forecast has been changed to $1.2 trillion. Next year, the association predicts origination of about $900 billion in mortgage loans, a 25 percent decline compared to this year. At the peak, in 2003, lenders originated $4 trillion in home loans.
Potential changes to HARP, the Home Affordable Refinance Program, or any other government measure that makes it easier for underwater borrowers to refinance could increase refinance volume.
NATIONAL RATE SURVEY RESULTS
Oct 13th, 2011 (Bankrate.com)
30-year Conventional:
4.37% — with avg. points: 0.40 pts
15-year Conventional:
3.59% — with avg. points: 0.40 pts
30-year FHA:
4.09% — with avg. points: 0.40 pts
5-year Conventional ARM:
3.26% — with avg. points: 0.40 pts
Welcome to Ocean City Maryland Real Estate Talk. Come meet us and discover all the joys of Beach Living on the Eastern Shore! 
