Mortgage rates may not be the most exciting New Year’s party conversation, but they definitely warrant some attention for both current homeowners as well as those that are thinking about buying a home in 2011. After years of steady interest rate declines, we might have hit bottom. According to a recent article in the New York Times, mortgage rates may start to climb in 2011.
Considering that I’ve used the words “”might”” and “”may”” in consecutive sentences, I’d encourage you to read the article in full. One nugget that I thought was particularly interesting- especially for people who have put off refinancing or purchasing a home because they were waiting for rates to drop further:
The 4.17 rate last month was the lowest since Freddie Mac began tracking rates in 1971 — as well as the lowest since World War II, according to Weiss Research, a financial analysis and publishing firm in Jupiter, Fla. The high point last year was 5.21 percent, in April.
So if you took out a 30-year fixed note for $400,000 at the recent 4.83 percent, you are paying $93 less per month than you would have in April — but nearly $157 more than you would have at the 4.17 percent benchmark.
Again, not great conversation fodder for your New Year’s fete, but food for thought if you’re thinking about making moves in 2011.