Green Bay Real Estate Agents, Desiree Wood, Matt Wood, Matthew Wood, Team Wood, The Wood Team. Serving Brown, Door, and Kewaunee Counties

Mortgage Rates Remain Affordable, but Should Increase by the End of 2013

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Although mortgage rates for the 30-year Fixed Rate Mortgage (FRM) hit their all-time lows in September and October 2012, low rates continue, making house buying affordable. The Federal Reserve has been artificially holding rates down to stimulate the economy, and it has been working! The growth we have seen, especially in the last year, shows the economy is responding. HSH Associates, the nation’s largest publisher of mortgage information, recently stated, “If not otherwise manipulated, higher rates are the natural result of a growing economy, as rising demand for available credit supply and concerns about inflation allow costs to rise.” The Mortgage Bankers Association (MBA) agrees, stating “mortgage rates are expected to creep up slowly in 2013.”

Here you can see a graph that shows the 30-year FRM rate each week of 2013. Rates have increased this year, spiking in mid-March, but consistently growing over the four-month time period shown. The MBA’s latest Mortgage Finance Forecast predicts that the 30-year FRM rate will be 4.3% nationally by the end of 2013, which is about .8% above our current rates. John Inzeo, Vice President of Wisconsin Mortgage Coporation, states they expect interest rates to increase to 4% in Wisconsin by the end of the year and will affect how much home you can afford. No one knows for sure where rates will be one year from now, but based on expert’s opinions and the general health and growth of the economy and housing market, it is unlikely rates will stay low for long.

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