Many mortgage watchers expect mortgage rates to maintain today's lows indefinitely. After all, the Federal Reserve has stated it will continue to buy $40 billion in mortgage-backed securities and $45 billion of longer-term Treasury securities each month (known as quantitative easing) for as long as it takes for the unemployment rate to fall to 6.5%.

But that commitment might be less firm than initially believed. The Fed recently clarified that its unemployment target isn't necessarily a specific number. In addition, a growing number of Fed governors are concerned over market risks associated with the Fed's asset purchases, which could lead the Fed to taper or end quantitative easing sooner than some economists expect.

These factors (along with a few others) have prompted Goldman Sachs to raise its yield expectation for the 10-year Treasury note – a good proxy for 30-year fixed rate mortgages – to the 2.25%-to-2.5% range this year.

Historically, the 30-year loan rate has averaged roughly two percentage points more than the 10-year Treasury note yield. The note currently yields around 2%. In other words, it's quite possible we could be looking at lending rates half-a-percentage point higher than today's rates by year's end.

 Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at