Experts Predict - Mortgage Interest Rates Will Rise in Escondido

Experts Predict - Mortgage Interest Rates will Rise in Escondido

Based on historical mortgage interest rates, we an be thankful for the 5% to be had in today's mortgage market. The following excerpts below were taken from various expert opinions, predicting the future of interest rates. The general consensus appears to be rising interest rates in Escondido, San Diego County and nationwide.

1985 11.11 to 13.15 (source: HSH's survey of National Fixed Rate Mortgages)

1990 9.75 to 10.54

1995 7.05 to 9.00

2000 7.24 to 8.40

2005 5.26 to 5.99

2009 4.77 to 5.46

"To sum it all up in 2010 I predict the interest rates will be around 4.69% until around April or so, then expect to see an average interest rate of 5.9% or so."

"Economists have been saying for months that interest rates would start to rise in 2010. It is unclear whether we will see a dramatic jump in January, but some are starting to worry that the Fed has very little rate-influencing power left and that the market may start moving rates back up fairly quickly."

"In fact, I predict that around April of 2010, mortgage rates will climb to about 6.25%. Once the housing market has some stability, the interest rates will go up. The mortgage lenders and banks will once again put profits first, and the homeowner second."

"2010 will likely be another tough year for the industry, as the unemployment rate peaks, but remains high, leading to continued high levels of delinquencies and foreclosures. Home sales should begin to pick up modestly, and home prices should begin to stabilize, leading to some growth in purchase originations. However, rising interest rates will significantly curtail refi originations."

"In this environment, tethered by the Fed and government support, movement in mortgage rates should remain muted. Conforming 30-year FRMs have been hanging just over or under the 5% mark for months now, and that should largely be the case (although just over 5% seems most likely in the coming period)..... For the next nine-week period, we expect the overall average interest rate to trend from 5.10% to perhaps 5.45%."

Mortgage Bankers Forecast: 2009 2010 2011

Existing Homes Sales 5,003,000 5,548,000 5,999,000

New Homes Sales 391,000 483,000 609,000

Median Price of Existing Homes 171,700 173,600 178,800

Median Price of New Homes 211,500 213,300 217,600

30-Year Fixed Rate Mortgage 5.0 % 5.5 % 6.0 %