...Maybe, according to Freddie Mac, as reported in a CNN article, Rates are up and new orders are expected 
to be down. This is the thrid week in a row that mortgage rates have been trending upward.
Don't expect March rates to bring any relief, most forecasts are for higher mortgage rates . As you can see (left) 30yr fixed rates are at November 2007 levels an
d the forecasts are for
steady increases in 10 year T note as well as the 30 year mortgage until at least May 08(right). However, interest rates are still very low when compared with the last 40 years (see below) and there is no reason to think think they will increase dramatically if inflation stays in check.
to be down. This is the thrid week in a row that mortgage rates have been trending upward.Don't expect March rates to bring any relief, most forecasts are for higher mortgage rates . As you can see (left) 30yr fixed rates are at November 2007 levels an
d the forecasts are forsteady increases in 10 year T note as well as the 30 year mortgage until at least May 08(right). However, interest rates are still very low when compared with the last 40 years (see below) and there is no reason to think think they will increase dramatically if inflation stays in check.
Sub 5.5% mortgage rates are not needed to emerge from a recess
ion and/or housing slump. The S&L crisis of the 1980's which was a contributing factor to the early 1990's recession , lead to a recovery in the Mid 1990's. And during that period rates were higher than today (7.1% +/-). So there is no reason to think that rates in the 6-6.5% range are too high for a full housing recovery. Good thing too because it is unlikely we will see rates below 5.5% in the near future, lets just hope that the early 2000's sub-prime lending mistakes, won't lead to a late 2000's recession.
ion and/or housing slump. The S&L crisis of the 1980's which was a contributing factor to the early 1990's recession , lead to a recovery in the Mid 1990's. And during that period rates were higher than today (7.1% +/-). So there is no reason to think that rates in the 6-6.5% range are too high for a full housing recovery. Good thing too because it is unlikely we will see rates below 5.5% in the near future, lets just hope that the early 2000's sub-prime lending mistakes, won't lead to a late 2000's recession.
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