Low mortgage rates are expected to continue…at least according to the Washington Post and the Mortgage Bankers Association. Although there have been, and will continue to be, variations from week to week, experts predict rates will remain low for a while, but won’t go very much lower.
A boost in refinancing demand usually pushes interest rates up and puts a damper on refi activity, but experts say borrowers have no need to worry about rising costs as they rush to take advantage of the U.S. government’s new no-equity refinance program. Mortgage Bankers Association economic forecaster Orawin Velz explains that the Federal Reserve plans to purchase $500 billion in Fannie Mae and Freddie Mac mortgage bonds to hold interest rates at about 5% by maintaining demand for the securities. Experts say borrowers should not wait to refinance in hopes that rates will fall as low as 4%, as this scenario is unlikely.
Personally, I have still found more leeway and better mortgage rates with the smaller, local banks. However, no one seems to have a good commercial real estate rate. I do think that Nashville mortgage rates still have room to come down as President Obama gears up to ‘solve’ our current financial crisis. Personally, I am holding out for 4.75 percent.