Julian Hebron of RPM Mortgage has writes in his blog The Basis Point, as have many others recently that rates are going to go up in 2011. But the difference is that he presents an excellent, easy to understand history and analysis of why.
Rates are expected to go up by about .75% by the end of 2011. This translates to about $450 a month difference in interest payments on a $729000 high balance conforming mortgage and $260 a month difference on a conforming loan of $417000. So if you are thinking of buying or refinancing, the potential for imminent rate increases are worth taking into account in your plans.
Julian writes, “Before presenting rate predictions for 2011, it’s worth noting that all forecasts are subject to the whims of highly volatile rate markets. What follows is an explanation of how rate markets work, how rates have behaved since the financial crisis began in 2007, then the outlook for this year.”
Read more on The Basis Point