Kenneth Bargers Blog

Interest Rates Predicted to Reach 6%

Interest rates are likely to rise to 6 percent by the end of 2010, predicted Amy Crews Cutts, deputy chief economist at Freddie Mac.

The end of the Federal Reserve program that buys mortgage-backed securities will drive rates higher because private buyers will demand more return than the Fed.

“Extraordinary resources have been put into keeping the rates down and supporting the mortgage markets and it’s hard to imagine that the rates can go much lower than they are,” Crews Cutts said. “Anything we get at or below 5 percent is a gift at this point.”

Source: Washington Post, Dina ElBoghdady (12/26/2009)

December 29, 2009 - Posted by kbargers | economy, real estate | amy crews cutts, bargers solutions, dina elboghdady, economy, federal reserve, freddie mac, kenneth bargers, mortgage interest rates, Nashville, prudential woodmont realty, real estate, realtor, washington post