If you manage to qualify to obtain a 30 year fixed rate, you could be in luck in 2010. You could also be a victim of rising rates depending on which analyst you listen to.

Home Loans on Zillow

Currently, thirty-year fixed mortgage rates as reported on the Zillow Mortgage Marketplace, are at 4.87 percent. Over the last week the rates hovered between 4.80 and just a hair above 4.90 percent. In fact, the movement far in 2010 has been very tight—ranging between 4.80 and 5.00 percent.

15 year fixed home loans are at 4.26 percent. For a 5-1 adjustable rate mortgage, the rate is 3.84 percent.

These rates are based on many thousands of mortgage quotes submitted daily through the Zillow site and represent the most recent market activity.

Analyst Predictions

Many analysts have prognosticated that interest rates on home loans will begin to rise in spring of 2010. In fact, some are predicting rates to go as high as 8.00 percent. This may be extreme but a one point increase seems possible. The reason? Mortgage backed securities (MBS). The Federal Reserve Bank is schedule to stop buying them at the end of March 2010.

FHA Loans

FHA (Federal Housing Authority) rates are still very low—as low as 4.75 percent. These loans account for about 33 percent of all new mortgages. You might wonder why everyone doesn’t get an FHA loan.

The answer is premiums and fees. For example, PMI (Private Mortgage Insurance) a monthly premium which is paid by the borrower to help insure these loans against default, has risen to over 2% of the mortgage balance.

The $8000 government tax credit for first time home buyers can help absorb some of the higher fees and insurance being charged on FHA loans.

Photo via Optical illusion