| Interest rates for fixed-rate, 30-year home mortgages | | | | costly, more buyers could enter the arena, giving the |
| are likely to hold below 7% for the rest of the year, | | | | market a soft landing that experts are looking |
| according to mortgage giant Freddie Mac.Chief | | | | for.Michele Joy of KB Homes said that when interest |
| economist for Freddie Mac, Frank Nothaft, said in an | | | | rates are below 7% it is a "great time to buy.""It's great |
| interview on Monday in Washington that 30-year rates | | | | news for the market," she said. "It's really good for the |
| will likely continue to rise in the upcoming months, but | | | | overall affordability index."Experts recommend |
| shouldn't go past 7%.Nothaft said that long-term | | | | fixed-rate mortgages to most consumers. With a |
| interest rates could even fall and will probably not hit | | | | fixed-rate loan, the risk is minimized as monthly |
| 7% until the second half of 2007.Freddie Mac was | | | | payments stay the same throughout the term of the |
| established by Congress in 1970. The company buys | | | | loan. Rising and falling interest rates do not affect the |
| residential mortgages from private lenders and | | | | current loan.With stabilizing interest rates, and the risk |
| packages and sells them on the securities market. This | | | | of increases still looming, many experts predict that |
| process replenishes the nation's supply of home loan | | | | homeowners with adjustable-rate mortgages will |
| money.Interest rates on a 30-year, fixed-rate mortage | | | | refinance for a fixed-rate mortgage.Martin Lukac |
| currently average 6.79%, according to Freddie | | | | represents and a finance web-company specializing in |
| Mac.The housing market has been experiencing a | | | | real estate and mortgage rates. We specialize in daily |
| slowdown, partly due to the increases in interest rates. | | | | updates, mortgage news, rate predictions, mortgage |
| Homes are staying on the market longer, and with a | | | | rates and more. Find low home loan mortgage interest |
| larger inventory, some areas are experiencing price | | | | rates from hundreds of mortgage companies! |
| stability or depreciation. With houses becoming less | | | | |