Acceleration in U.S. growth and rising energy costs will likely translate into higher long-term interest rates, Freddie Mac economists [Marketwatch]

  • They project diminished appreciation next year at a rate of 7.1% (This seems to be reasonably healthy to me)

  • They project thirty-year fixed-rate loans, to rise to 6.4% by December 2006, from 5.8% in September 2005 (This still seems to be at near-historic lows)

  • The number of home sales are projected to drop 3.3% next year (Thats still at near record levels)

One Response to “Mortgage Rates In 2006: Freddie Casts A Negative Spin Through A Silver Lining”

  1. pcampbell says:

    The market seems to be doing the same thing it always does – panicking( 1980’s/1990’s/2000’s boom/bust/boom ). Everyone should calm down and hold the course and while history does tend to repeat itself – this is not the 1990’s. I could be wrong but with the lack of housing stock, population growth, more young people marrying and wanting to set up their own homes, foreign investment, the weak dollar, immigration, and so on, I don’t think the Manhattan RE market is going to take a nose dive anytime in the near future.