Mortgage Rates No Longer Setting Records, But Still Low

By Kyle Chezum Updated on 12/30/2010

12/30/10

Mortgage rates are no longer resting at record lows.  The increase seen over the past few weeks has brought rates up from around 4% to somewhere just shy of 5%, depending on who you ask.  This is still low, as far as mortgage rates go, but the market is past the point of setting records and inching toward business as usual.

Keith Gumbinger of HSH Associates said, "I don't think we're going back to a 50-year low anytime soon without an economic collapse.  Rates will probably never revisit those levels."  But Lawrence Yun, chief economist for the National Association of Realtors, feels that the higher rates may be a good thing.  "The initial phase of an interest rate increase generally does not hurt markets," he said.  "In fact, it can help."  Unemployment and consumer confidence are the most important factors.

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