A recent article in The Wall Street Journal explained that many economists are predicting a rise in the nation's mortgage rates soon.
"It's hard to imagine how long-term, 30-year fixed-rate mortgages could go lower than they are right now," said Frank Nothaft, vice president and chief economist of Freddie Mac. "These are the cheapest rates we’ve ever seen."
The article explains that economists have been largely duped by the economy this year, with many not expecting it to weaken as badly as it did. These experts didn't foresee troubles in the European market, which maqny analysts believe led to lower consumer confidence, or for the Federal Reserve's Operation Twist, which was put in place to drive interest rates lower.
For the week ending September 29, rates for 30-year fixed-loans averaged 4.01 percent, the lowest rate on record since Freddie Mac's Primary Mortgage Market Survey began in 1971.
While Nothaft and other experts predict rates to rise, Bob Walters, chief economist at Quicken Loans, believes rates could push lower since 2011 has been full of surprises.
With rates remaining low for a prolonged period, the Houston real estate market has benefited, recording better sales for several months, according to the Houston Association of Realtors.
Courtesy of 2M Realty News