2012 prediction: Mortgage rates to remain at record lows
Posted on Thursday, January 12, 2012 at 8:42:23 AM
Mortgage rates for 30-year fixed-rate mortgages in 2012 are expected to remain at record lows, according to experts. Owners or prospective homeowners should look into a home mortgage comparison in order to get the best deal possible.
“We may spend the entire year below 5 percent,” Greg McBride, senior financial analyst for Bankrate.com, referring to the average interest rate for a 30-year fixed-rate mortgage, told Market Watch.
According to McBride the rates are partially attributed to the Federal Reserve's pledge to keep short-term rates low through 2013 and the financial troubles of Europe.
The 30-year-fixed rate mortgage averaged at 3.91 percent for the first week of 2012, Freddie Mac reported. The average rate in 2011 was 4.5 percent in 2011, after they fell toward the end of the year. While mortgages rates are expected to stay low for 2012, experts say consumers should expect a slight up-tick in the second half of the year.
The housing market slowly saw improvement through 2011 and is expected to continue its positive growth for 2012.