My crystal ball is cracked, it may even be broken. :) Rates today are artifically low due to a slower than normal market and the third round of Quatitative Easing done by the federal government. Quantitative Easing is a practice where the federal government spends money (that they don't have) to buy mortgage backed securities which in turn helps keep rates low. As we progress through and past this "Fiscal Cliff" the fed will have to stop spedning this money. In the end rates will trend upwards in the future. Some mortgage experts predict we will have rates around 5% by this time next year. As rates rise, your buying power drops. please give me a call to discuss this further.
Jim Bartlett 919-961-1238
I used it myself for my loan lock decision on my home and I recommend it for my clients. It is near-term info, though, what's happening in the next week.
I think, for the longer term, a lot will depend on how Congress handles the "fiscal cliff". If they bungle it and erode consumer confidence, the rates may have to go down to compensate and calm the masses. If they handle it well (wouldn't that be a miracle??), I think we'll see steady rates for awhile. Whatever happens, these record-low rates are AMAZING, and I'm SHOCKED there aren't more people falling all over themselves to buy now!