For nine consecutive weeks, the 30-year fixed-rate mortgage has been hovering at or below record lows of 4.00 percent, pushing housing affordability for home buyers higher. But how long will these low rates last?
The Federal Reserve has vowed to keep rates low through 2013 so these rates will likely be around for a few more months at least, however many experts say it is unlikely mortgage rates will stay at the current record lows.
According to Freddie Mac economists’ forecast, the 30-year fixed rate mortgage is expected to increase to an average of 4.50 percent in 2012 and up to 5.40 percent in 2013.
For comparison, the 30-year fixed rates averaged more than 16 percent in 1981 and 1982.