So, the first of 2011 has seen a steady increase in mortgage rates. The 3.75 30 year fixed rates are now gone and we are back in the 4's. Back in the 4's?? Is this supposed to be a BAD THING?? I am a mortgage banker and I can recall when I was excited to refinance my own home all the way down to 6.5%! Does anyone remember 8%? 9%? Hell I was at 13% in Florida in the 90's and that was with excellent credit!

So here is the outlook! 2011 is going to bring us back to rates in the 5's, which is about the same levels as 2009/2010. Why this is not a good outlook for refinancing, unless you are one of the many who could not get refinanced during this last record low rate decrease, this is not an impediment to homebuyers. As our economy improves, the rates will worsen. So, although I hate to see these fabulous rates go bye-bye, I am excited that our winderful nation is finally recovering.

So I say, SELL SELL SELL those houses and with rates in the 5's for the rest of this year, our housing market and property values are only going to improve! This year should be a banner year for everyone including new home buyers!
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