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INTEREST RATES AND THE HOUSING RECOVERY

By
Real Estate Agent with National Realty Centers 135481

For the first time in five weeks, mortgage rates have increased, which threatens the housing market recovery.

According to Freddie Mac, 30-year fixed mortgage rate increased to 5.01 percent, from 4.98 percent in the previous week.

A 15-year mortgage rate averaged 4.40 percent.

"The spring will probably look really good," said George Mokrzan, senior economist at Huntington National Bank in Columbus, Ohio. "My concern is more the second half of the year. The tax benefits go away and I think the mortgage rates will probably go up."

Keith & Shannon French
www.KeithandShannonFrench.com - Catonsville, MD
Baltimore's Best for Rent To Own Homes

Yeah, I heard the rates were going up and I was surprised.  Hopefully they'll see that's a bad idea, but maybe it'll get folks who are looking to buy off the fence and purchase already.  I'm also hoping that they'll extend the tax credit.  Lots of buzz about that and we're coming up on crunch time.  Very interesting times.

Feb 04, 2010 10:11 AM