A familiar prediction about mortgage rates

Every December for the past few years, there have been forecasts calling for higher mortgage rates in the new year. Yet rates have remained in the bargain basement, to the delight of commercial and residential home borrowers.

While rate have remained low, it is my personal opinion that 2005 may finally be the year rates go up.

Even though interest rates remain around historic lows, it's unrealistic to think they're going to stay there for any extended time in the near future.

Right now, 30-year mortgage rates are well below six percent, lower than they were a year ago. The only thing that might keep long-term rates at those levels is another recession -- and most economists are not expecting a recession.

Mortgage company Freddie Mac predicts rates will go up by about half a percentage point within the next year.

Still, interest rates are inherently unpredictable, so who really knows what's going to happen?

Interested individuals can download historical graphs of various interest rate indices.