If you are like most of today’s potential home-buyers, not only are you on the lookout for the perfect home, but also for the perfect rate. Surrounding you are advertisements for rates you wouldn’t have dreamed of a few years ago, but how long are these low rates here to stay? A little research will show you that forecasters are predicting that the trend will be an upward one. The following graph reflects the trends we saw in rate movement for 2009:

Click graph for larger image. Reproduced with the permission of Mortgage-X.com

As you can see, the end of 2009 has us in an up-swing. I had the opportunity to sit in on a lecture given earlier this month by Dr. Lawrence Yun, Chief Economist for the National Association of Realtors. His prediction was that interest rates could very well rise between 6 and 6.500% by the end of 2010.

Of course, this is just one prediction amongst many, but also a prediction heavily weighed on the facts we do see before us at present time. The Fed is gearing up to gear down their assistance with keeping rates low but ending their purchase of mortgage-backed securities. The hope is that the market is strong enough to sustain itself without this specific assistance.

The bright side is that that even if we hit 6.500%, this is still lower than the rates we had available to us just a few short years ago. Low rates now coupled with great home prices and tax incentives make this a true buyer’s market and a great time to consider your own home purchase!

Heather D. Myott,
Mortgage Advisor
Tel (802) 238-1704
Fax (856) 917-2188
Heather.Myott@mortgagefamily.com
Licensed in Vermont #6038

Specializing in FHA, VA, Conventional and Jumbo Mortgage Financing

The interest rates are back into the 4′s again and Burlington Vermont buyers are taking full advantage. The current 30 year fixed mortgage is at 4.875%. (4.912% APR) While the 15 Year fixed rate is currently at 4.375% (4.414% APR).

The main reason behind the rate reduction: Consumer Confidence was reporting quite a bit lower than expected for September. On this news, stocks have reversed a bit lower, helping Mortgage Bonds improve. Keep in mind that markets continue to be very volatile. Friday’s unemployment numbers could send rates down even lower. However, an improved figure could put rates back into the 5′s again.

While Vermont real estate prices do reflect the national trend of slow, steady improvement, the present low rate should inspire even more Burlington buyers.

These two Burlington listings under $500,000 certainly inspire:

Burlington Vermont home under $500 K - Classic Victorian MLS# 2910193

Burlington Vermont home under $500 K - 4 bedroom Cape MLS 297080