Home Mortgage Rates to Increase

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  Early last year, the Federal Reserve began purchasing mortgage-backed securities, which helped maintain low interest rates for consumers.  However, the Fed’s purchase program ended in March, and some analysts forecast interest rates to increase throughout the rest of the year.  One financial publishing company predicts that rates likely will rise to 5.5 percent by mid-2010 and close the year at 5.75 percent to 6 percent.  The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) projects rates on 30-year fixed-rate mortgages to average 5.6 percent this year.

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