NAHB Predicts Rising Rates for US Fixed-Rate Mortgages in 2010
Rising rates for US fixed-rate mortgages in 2010 and 2011, are predicted by the December 2009 forecast issued by the National Association of Home Builders (NAHB).
Note that for 2010 the NAHB predicts different trends for fixed-rate mortgages and adjustable-rate mortgages. In particular, the NAHB predicts that the average Freddie Mac commitment rate for US fixed-rate mortgages will increase from 5.05% in 2009 to roughly 5.4% in 2010.
The average rate for US fixed-rate mortgages is predicted to continue climbing in 2011 to reach 5.84%, representing a 45 basis point increase compare to the average 2010 rate.
On the contrary, rates for US adjustable-rate mortgages (ARMs) are predicted to decrease in 2010 but rise by about 60 basis points in 2011. In particular, NAHB predicts that the average Freddie Mac commitment rate for ARMs will decrease from 4.71% in 2009 to 4.66% in 2010, but that will rise to 5.25% in 2011.
The US prime rate is predicted to maintain in 2010 its 2009 level of 3.25% but rise to 3.44% in 2011.
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