What's going to happen to Interest Rates in 2010


The First Quarter 2010 will likely be buyer's last chance to take advantage of low interest rates and government tax rebates.  The government will stop buying securities to keep more rates lower, so mortgage rates will start rising immediately to normal market levels which could reach as high as 8% by the end of the year.  Most likely we will see between 6.5% and 7.5%.


Last 6 months when the government got more involved to lower rates (See Below)


This chart show interest rates since 2003.  Rates have a tendency to go up rapidly after hitting their lowest point and they also tend to go a little higher than their last highest point. 

That is how we know that they will likely go up to between 6.5-7.5% over the next year.


The NY Times and Housing Wire both agree with these predictions (See Below)