Share
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights mortgage rates and inflation.
- The interest rate on the 30-year fixed mortgage rate has remained relatively flat over the last month and is currently 4.96%.
- The average annual inflation expectation in the U.S. over the next ten years also remained flat, and is currently 2.48%.
- Stronger consumer demand and improved employment will bolster housing demand, but will put upward pressure on inflation which in turn would cause long term interest rates to increase. NAR is forecasting interest rates to increase to 5.6% by the end of 2011.
- The cost of financing a $170,000 home purchase with a 20% down-payment over 30 years would increase by approximately $600/year with a 60 bps increase in the mortgage rate.
Notice: The information on this page may not be current. The archive is a collection of content previously published on one or more NAR web properties. Archive pages are not updated and may no longer be accurate. Users must independently verify the accuracy and currency of the information found here. The National Association of REALTORS® disclaims all liability for any loss or injury resulting from the use of the information or data found on this page.