Mortgage Rates Start the Year with a Decrease

By Kyle Chezum Updated on 1/6/2011

1/06/11

Freddie Mac reported today that mortgage rates have begun to decrease, against all expectations.  You can get a 30 year fixed rate mortgage for 4.77%, down from last week’s relative high of 4.86%.  This time last year, rates were still above 5%, a level experts expect they’ll reach again in 2011.

The Mortgage Bankers’ Association reports that the number of mortgage applications completed around the end of last year is about the same as the number completed around the beginning of last year.  Frank Nothaft, chief economist for Freddie Mac, said, “Mortgage rates began the new year a little lower this week and remained below those at the start of 2010, which should help aid the recovery in the housing market.”  Time will tell.  Mortgage rates are still expected to rise significantly during 2011.

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