happy-holidaysSince the most recent FED meeting on December 12, rates have moved up in a steady fashion. The benchmark 30 year fixed rate mortgage, (which conforms to Fannie Mae guidelines) has risen anywhere from .125% to .250% above last month’s new record lows.

This could be temporary or the start of a seasonal trend. The past three years have seen rates bottom out during the fall and then increase into the winter and spring. Rates are now consistent with levels seen in early September of this year.

We all know that at some point interest rates have to move back up, for good. When that happens in anyone’s guess, but as the economy improves and the jobless goes down, rates will certainly move up accordingly.

My prediction for 2013 is that rates will be in the range of  3.5% – 4.0%, similar to what we saw this most of this year.



Beau Hodson

Beau Hodson

About the Author Since 2003, Beau has been a mortgage professional and is a leading mortgage broker and lender in San Diego. As Founder and Senior Mortgage Advisor at Transparent Mortgage, he is truly committed to serving the needs of his clients and raising industry standards for integrity and transparency.