Mortgage Rates Seen Rising to 5.1 Percent in 2011

Barring a major announcement from the Federal Reserve next month, the Mortgage Bankers Association expects rates on 30-year fixed mortgages to average 4.4 percent in this year’s fourth quarter, rising to 4.7 percent in the first three months of 2011 and to 5.1 percent by the end of next year. MBA chief economist Jay Brinkmann expects a rebound in purchase originations next year, but the volume will still only roughly match last year’s level. Refinance activity, however, is expected to decline in the new year as mortgage rates begin an upward climb from current record lows. | Read More