Team Annett

Search More

Our Blog

Interest Rates Predicted to Reach 6%

Posted on February 10, 2010 by tim in Buying, FHA, First Time Home Buyer, Mortgage

Interest rates are likely to rise to 6% by the end of 2010,predicted Amy Crews Cutts, deputy chief economist at Freddie Mac.

The end of the Federal Reserve program that buys mortgage-backed securities will drive rates higher because private buyers will demand more return than the Fed.

“Extraordinary resources have been put into keeping the rates down and supporting the mortgage markets and it’s hard to imagine that the rates can go much lower than they are,” Crews Cutts said. “Anything we get at or below 5% is a gift at this point.”

Source: Washington Post


Comments are closed.