MortgageJaw.com

Found this real good article from Diana Olick below with her Real Estate Predictions for 2010. Just wanted to high light the Mortgage section for rates and my previous post about Mortgage Rates Will Rise by End of 1st Quarter 2010 (March). Remember, with the FED backing away from buying Treasuries Securities by the end of 1st Quarter 2010, unemployment number possibly trending down, and housing stimulus programs nearing an end, then mortgage rates should move up. Also be listening to what the FED plans on doing about the over night rate because it can not say at 0% to .25% for much longer.

Article by: Diana Olick

http://www.cnbc.com/id/34110130

 1. The residential housing market will dip again in mid-2010 before settling into a recovery in the back half of the year. 

The end of government programs that have been artificially buoying housing (home buyer tax credit and Fed’s Fannie Freddie mortgage purchase program) will result in a slowdown in demand right at the height of the Spring season. Rising foreclosures will also push more inventory onto the market, putting additional downward pressure on home prices.

2. Foreclosure inventory will be a lot higher than some predict.

Shadow inventory should be seen not just as homes the banks are holding on to or that are still in the foreclosure process, but homes where borrowers have stopped making payments and have not heard from the banks.

3.  No more historic lows on the 30-year fixed.

Unless the government decides to extend its Fannie-Freddie purchase program or do something else to juice the credit markets, mortgage rates will rise steadily, probably leveling off somewhere around 6 percent.

4.  Commercial real estate will continue to suffer the ills of low vacancy rates, low rents and high default rates.

The biggest concern is credit, as billions of dollars in commercial debt come up for refinance with little to no takers.

Hope this helps