We’d better get used to the idea that five percent 30-year fixed mortgages are back and here to stay. According to Freddie Mac’s Primary Mortgage Market Survey, the national average interest for a 30 year, fixed-rate mortgage was above 5% for the first time since May 2010. As a matter of fact, during the week ending Feb. 11, rates averaged 5.05% and rates quoted by Bankrate.com spiked to nearly 5.25% in the past week. To learn more, read the full CNN Money news article here: http://money.cnn.com/2011/02/10/real_estate/mortgages_break_barrier/index.htm
My prediction is that the 30-year fixed mortgage rates will reach 6.5% by the end of 2011.