Pulling out the crystal ball on mortgage rates
Mortgage financier Freddie Mac expects that interest rates on 30-year fixed-rate mortgages will end up averaging 5.5 percent this year, "the lowest in at least 45 years," Bloomberg reports. It was 6.3 percent last year.
If you're looking to get a loan or to refinance, that's good news. But what does that mean for sellers? Is this the start of Housing Boom Part II?
As if, opines Global Insight economist Brian Bethune:
"The lower rates, in themselves, are not going to cause a housing turnaround because they are second in importance to excess inventory and falling prices," Bethune said.
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Comments
If interest rates drop to 5.5% they wont last that long, at least I dont think.
Posted by: Mortgage | March 4, 2008 3:02 PM