August 2, 2005-- Posted at 3:25 PM CDT
It looks as though it's happening yet again. The experts said mortgage rates would finally be going higher this year -- but, for another year, the market is defying them.Mortgage company Freddie Mac has just revised its forecast for 2005. Instead of higher rates, chief economist Frank Nothaft says they're now looking for 30-year fixed-rate mortgages to average five-point-eight percent -- for the third year in a row.
Nothaft says it's "remarkable" that mortgage rates have gone so low and stayed so low for such a long period of time. He says it feels like the mid-1960s, when the country also went through a period of relatively stable and low mortgage rates.
As for when rates might go higher -- well, maybe next year. Freddie Mac is now predicting that mortgage rates will gradually rise from their current levels over the next 12 to 18 months, and will average about six and a-quarter percent during 2006.
Nothaft says that should slow the housing market after what's likely to be another record sales year in oh-five.