I wrote a piece in December called Louisville Mortgage Rates Expected to Rise in 2010, complete with a chart showing just how low-interest rates had gone.
So now let’s see why experts believe rates are on the rise.
It is actually a forecast that is being espoused by many economists these days. The reason for the rate hike appears to be a combination of the end of the Fed securities buy-back program and potential difficulty in selling off U.S. debt.
The Fed will stop buying back on March 31st so we’ll be able to watch this week the initial reaction to this change. Just last week, national rates on a 30-year fixed were a little over 4.9% on Monday and by Friday they rose to 5.2%. If you’re in the market for a new mortgage, you need to act quickly.
Stay tuned to this blog for more information in the coming months.
