Rates Holding Steady At Start of 2010

As we all wait to see what 2010 brings for the economy, I am happy to report that interest rates are still low to start off the year.  We are seeing conventional 30 year loans in the low 5s and 15 year loans in the upper 4s.  The ARM rates have not changed at all and are still available in the low to upper 4s depending on product and loan size.

Most experts expect rates to stay low for most of 2010, though a little higher than they are now.  I agree with that assertion unless the employment market starts to improve.  An improving employment market will be the one inflationary indicator that I think will cause a permanent and steady increase in interest rates. However, with no real sign of improving employment (other than the “dummy” numbers of less decrease in employment), I don’t see that happening soon.