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Just in...New industry poll results: Higher mortgage rates predicted for 2006.
This question was asked to industry experts:, "How high do you think mortgage interest rates will climb in 2006?” Almost 65% of the industry people who responded predict mortgage rates to rise up and settle at nearly 7 percent. MBA predicts interest rates on a 30-year fixed rate mortgage to be 6.5 percent for the second quarter, 6.6 percent for the third quarter, and 6.7 percent for the fourth quarter.
Most analysts expect that the new Federal Reserve Chairman, Ben Bernanke, will continue to increase short term interest rates this year. The majority of voters, nearly 60 percent, believed that mortgage interest rates would stay between 6 percent and 7 percent. A significant proportion, around 35 percent, believed that rates would top 7 percent. Only 6 percent of respondents thought that interest rates would stay below 6 percent.
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