TEXT OF STORY
STEVE CHIOTAKIS: 2009 was a year of frayed economic nerves. Looking to soothe them, the Federal Reserve bought more than $1 trillion worth of mortgage bonds, which sent mortgage rates plunging. Well, don’t expect the same this year. Brett Neely has more.
BRETT NEELY: Right now, you can get a 30-year mortgage for as little as 5 percent. That’s the lowest rates have been — ever. Now that the economy has stabilized, the Fed plans to stop buying mortgages this spring.
Brian Bethune is an economist with IHS Global Insight. He expects rates to rise.
BRIAN BETHUNE: So there’s going to be some moderate upward pressure on rates, but we don’t see anything dramatic.
Those low interest rates have propped up the housing sector. But even if they rise, Bankrate.com’s Greg McBride says it shouldn’t hurt the economy’s rebound.
GREG MCBRIDE: Mortgage rates are still going to be low enough that they’re not going to be a headwind for prospective home buyers.
McBride says 2010 is the year to refinance for anyone still holding an adjustable rate mortgage. He says rates can only go up from here.
I’m Brett Neely for Marketplace.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.