According to Lawrence Yun, Chief Economist of the National Association of Realtors, mortage rates are expected to start climbing soon.  Interest rates have been historically low for some time but times are changing.  He predicts thirty-year rates may rise to 6 percent by December and to about 6.5 % at the end of 2011. 

The continued high U S budget deficit and the recovering economy are the main reasons rates are likely to climb.  Mr Yun goes on to say that if the US government has trouble borrowing and has to raise interest rates to attract investors to purchase our debt, the rest of the private sector will have to pay higher interest rates.  Mr Yun says on the positive side he does not forsee the mortgage rates to go above 7%  at least not for the next  two years.

More information can be found at www.Realtor.org/realtormag issue for May 2010.