January is the time of year we all like to make our predictions for the coming 12 months. I’ll contribute to the process by starting with mortgages. Here is an article (Link) that tackles what to expect when arraigning a home mortgage in 2011 In my opinion it’s a pretty balanced prediction. Interest rates will slowly rise and as rates rise refinance activity will slow and purchase mortgages will form a larger part of the market and finally, the process will become more complex. I believe we are through the roller coaster period we’ve experienced over the last few years. More stability will occur as we slowly come out of recession.
It’s important to remember that rates are still near historic lows which in my opinion is the silver lining in this recession.