Mortgage Predictions for the New Year – Home Prices Stabilizing, Mortgage Rates Rising

By Kyle Chezum Updated on 1/10/2011

1/10/11

Mortgage predictions and housing market expectations for the coming year are plentiful in the media.  Some trends we can expect to see include the following.

Mortgage rates will likely continue to rise.  Demand for mortgages will decrease as a result, tough rates will continue to remain low compared against previous years.  The refinance marketplace will mostly disappear as higher rates eliminate some significant savings opportunities.

In addition, home prices should stabilize and home purchase should being to pick up again.  Cash purchase will play a larger role, and larger loans, such as jumbo mortgages, will become more common.  Will these predictions come true?  Time will tell.

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