Predictions of Low Interest Rates Through 2011

No one has the corner on a crystal ball for interest rates, but Freddie Mac is predicting that mortgage interest rates will remain in the 5-5.5% range throughout the year for 30 year fixed mortgages.

The Freddie Mac report cited the continued mixed unemployment picture as the main reason why rates will not go up. Demand will be slow, though gradually improving, so little pressure will come from the demand side of the equation.

Freddie Mac chief economist, Frank Nothaft, has revised his expectations for home sales downward for 2011, but still believes that there will be a 10% improvement in home sales over 2010.