This time of the year is just chock full of predictions. Who will win the Super Bowl this year? What will be the latest and greatest technological advances for 2012? What will happen with these amazingly low mortgage rates that we have been enjoying for the past few months?
OK, so maybe that last question may not be on the minds of everyone out there, but it definitely is a concern in my book. After all, it’s not every day that we feast our eyes on record-low mortgage rates.
Freddie Mac predicted that mortgage rates will remain low for the new year, according to a post on the Freddie Mac blog from my dear, pseudo friend Frank Nothaft, and he attributes this to the fact that the Federal Reserve policy on interest rates should remain unchanged.
He explained, “This should keep fixed rates for 15- through 30-year products relatively low during the first half of the year, with rates edging up during the second half. Further, the Federal Reserve’s August announcement that it was likely to maintain its current federal funds target through mid-2012 ensures that initial-period interest rates for one-year and various hybrid adjustable-rate mortgages will remain extraordinarily low throughout 2012.”
Nothaft also asserted that the U.S. housing market should grow brighter and that the rental market could provide a nice little breath-of-life for the entire housing market.
To read more about mortgage rates staying low in 2012, click here.
Eric Mally writes for Quicken Loans and loves that it’s one of the most amazing places to work. Check out the Quicken Loans YouTube page and learn more about what it’s like to work at QL.