Mortgage bankers see rates rising in 2010

Fixed mortgage rates are expected to average about five percent in the fourth quarter of 2009 and increase to 5.6 percent by the end of 2010, according to the Mortgage Bankers Association (MBA).

The organization further predicted that sales of previously owned homes for 2009 will end up about two percent higher than those for 2008.  It projected existing home sales to increase further in 2010, increasing by about 11.2 percent.

New home sales for 2009 will be down by about 18 percent relative to 2008, according to the MBA. It noted:

“Sales seemed to have bottomed in the first quarter of 2009 and have been rebounding modestly since. For all of 2010, new home sales should post an increase of about 21 percent from 2009’s very low levels.

“National average home price declines should abate by early 2010, but will vary by state and home value. The demand will be highest for entry-level homes.”

You’ll find other gazing at navels and crystal balls in my free bi-weekly e-newsletter, as well a wealth of information on the housing market, the mortgage biz, household tips and celebrity doings.

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Malcolm Carter
Licensed Associate Real Estate Broker
Senior Vice President
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022

M: 347-886-0248
F: 347-438-3201

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