The Federal Reserve’s purchases of mortgage-backed securities kept interest rates near historic lows for much of last year. But within a week of the program’s expiration, rates for 30-year fixed-rate mortgages jumped from 5.04 percent to 5.31. Now many analysts are predicting rates will likely rise as high as 6 percent by early next year. Here are five other housing trends to watch
- Distressed properties will keep prices under pressure.
- Big homes are lagging small ones in the recovery.
- Financing for condos, second homes, and jumbo loans are tough to get.
- Buyers, rushing to beat the tax-credit deadline, will set off a flurry of spring sales.
- Going green this year can save you more money.