by Jaime Beus Kinman, Guaranteed Rate
Where will home loan rates go during 2010 and why? Rates are going to be higher in 2010. There will be more supply coming to the market in the first quarter, while the Fed’s purchase of mortgage backed securities will be winding down. They pledged over a year ago to purchase $1.3 Trillion which has kept rates low with demand high. In fact rates are about 1% lower than they would be if they weren’t participating in the purchasing program.