Consumers procrastinating on locking in the lowest historical mortgage rates ever better act fast as by year's end they are set to become a thing of the past. Mortgage behemoth Freddie Mac began tracking mortgage rates in 1971, and since that time period 2010 is going down in the record books for having the lowest mortgage rate offers ever. For the majority of the year, mortgage rate offers on traditional 30-year fixed-rate mortgages have been well below the 5 percent mark, however according to Mortgage Bankers Association (MBA), rates are expected to climb in 2011.
History of Low 2010 Mortgage Rates
When the new millennium rolled in at the conclusion of 1999, the country was filled with optimism, loose credit standards and the desire to pursue the American Dream of homeownership. Although not everyone had the financial means or credit histories to do so, the loosely regulated subprime mortgage industry provided borrowers with the loan opportunities to make the move. Lenders heavily pushed these types of loans and many consumers did not fully understand the terms of their subprime mortgage obligations, some of which featured adjustable rate mortgages featuring balloon payments. While that trend was occurring, home values reached their highest levels in decades, individuals took out home loans to tap into the equity they had built up and things seemed good.
That changed in 2006, courtesy of a mortgage meltdown fueled by the subprime mortgage industry. At this time, consumers who had previously locked into mortgages that were not conventional fixed rate opportunities were being saddled with larger than average monthly payment amounts. Unfortunately, many of them could not afford to pay off the debt and default activity started to spike across the nation. That in turn crippled Wall Street as the mortgages were bundled into investment packages and as they devalued, so did the portfolios of the bankers (and their clients).
Those factors helped kick up what is currently known as the "Great Recession" marked by high rates of foreclosure, unemployment and financial instability throughout the country. In response, the Federal Government reacted by offering a slew of stimulus acts, housing aid and by lowering the Federal Interest Rate as a way to lower mortgage rates and encourage consumers to continue buying homes and refinance existing mortgages. According to the recent forecast released by the MBA, that trend is set to end very soon.
Future of Mortgage Rates
As of October, 2010 the average mortgage rate was 4.23 percent with an average of .8 points. The MBA recently announced that consumers should expect rates to slowly creep up towards the 5 percent mark. The process is expected to be slow and will begin with an increase to around 4.7 during the first portion of 2011, the organization does expect the rates to rise past 5 percent by years end.
Now Is The Time To Get the Best Mortgage Rates Ever
Since there is no real way to predict how the mortgage industry will play out in the future, individuals looking to get the best mortgage rates should act now. Experts expect that mortgage rate opportunities will remain low for the remainder of the year and qualified consumers are encouraged to act now.
If you are a mortgage seeker looking to take advantage of the current mortgage offerings, Mortgage Marvel is here to help. Mortgage Marvel is the industry's leading mortgage rate origination that will provide accurate mortgage quotes and fees all without requiring your personal information, regardless of where you live in the country. Consumers looking to streamline the mortgage rate comparison and online application process, can count on Mortgage Marvel to provide the best mortgage rates from hundreds of lenders. Additionally consumers can expect to receive:
- Real mortgage rates, not just samples
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- No unwanted phone solicitations
With Mortgage Marvel, what you see is actually what you will get!
