As of February 2013, mortgage rates for a 30-year fixed-rate mortgage were seen at 3.51 percent, based on the Freddie Mac listing. The lowest rate in history was at 3.38 in December 2012. So it is safe to say that the 3.51 percent is not bad at all. The low interest rates this year is the result of the efforts of the Federal Reserve to hold the rates in check. You see, the government has been artificially holding the rates steady by practically buying mortgage loans from the banks. While the low arates attract more buyers into the field, government intervention won’t be there forever, thus the rates will soon start to climb.
In fact, experts predict that for the most part of 2013, the industry will see a relatively low interest rates but not as low as the current mortgage rates. In fact, by the end of 2013, rates will hit at 4.4 per cent. And by the end of 2014, the rates will reach 4.6 percent. This prediction is based from the projections made by the Mortgage Bankers Association (MBA).
If you think that the increase isn’t much, think of it this way. If you are refinancing hundreds of thousands of dollars for a 30 year- mortgage, that interest is hard to ignore. For instance, on a $400,000 fixed-rate mortgage, the two-tenths difference between a 4.0 and 4.2 percent, can cost you an additional $16,400 over the life of your mortgage. If you are looking for information on mortgage deals 2013 has to offer, check out the link now.