Tuesday, January 4, 2011

Mortgage Rates Headed Toward 6%

Mortgage rates ended 2010 with a steep ascent but we have to keep the figures in perspective. Rates were higher then the year started versus when it ended. And, historically, we remain well below the average.

That's why mortgage rates should rise in 2011. Momentum is drawing rates up, and the market is moving towards its mean. The Refi Boom is over and higher costs are coming.

Above quote originally published by, and copyright reserved by Dan Green of, an Ohio-based mortgage lender with an excellent blog.

Here’s a chart showing mortgage rates over the past 40 years.

Historically speaking, rates really have very, very little “down” left in them. It’s almost inevitable that mortgage interest rates will go up. How soon? Hard to say, but if you’re like the average home buyer, Murphy’s Law says rates will go up before you’re ready for them to do so.

Chart showing 30-year fixed rate mortgage rates over past 40 years was originally published by, and copyright of The St. Louis Federal Reserve, which has a website chock-full of useful and fun economic data, charts, graphs and statistics.