Home Buying in 95121>Question Details

Lakisha, Home Buyer in San Jose, CA

Are mortgage rates rising up?

Asked by Lakisha, San Jose, CA Thu Aug 23, 2012

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John Juarez is, as usual, spot on regarding this one. He gets a "thumbie" from me!!

Grace Morioka
Area Pro Realty-People's Choice
1 vote Thank Flag Link Thu Aug 23, 2012
I agree with John. On a day to day basis, interest rates may float higher. That reflects the supply and demand of the mortgage products. On a bigger scale, there is no real driver for higher interest rates. With the economy as it is now and the looming fiscal cliff, the interest rates will stay low for awhile.

Many realtors will tell you that the low interest rate won't stay around for long and you should buy home and lock in the low rate now. But you should really judge for yourself and base your home buying decisions on your personal needs and affordability.
1 vote Thank Flag Link Thu Aug 23, 2012

If you are talking about small moves on a daily basis, yes interest rates have moved up a bit. By the time you read this they may be back down. Rates change a little each day and throughout the day.

If you are talking big picture, no, rates on not on their way up. The Federal Reserve has made a public commitment to keep rates low in an effort to help our national economic recovery. Rates are still in a very attractive range and should stay there for the some time to come. As the economy recovers rates will eventually be allowed to rise to fight inflation.

With low rates and lower prices the window of opportunity remains open for those who want to buy. If you are trying to time the market in order to get the best possible rate for a refinance you are delving into an area with a high degree of uncertainty. It is impossible to say when rates have hit bottom except in retrospect…after they have gone up.
1 vote Thank Flag Link Thu Aug 23, 2012
As the others have pointed out yes they are. Remember nothing stays the same forever.
I hope you purchase soon, or refinance.
At your service,
1 vote Thank Flag Link Thu Aug 23, 2012
They did tick up a bit. A simple reminder that these great low rates are subject to change.
Web Reference: http://www.terrivellios.com
1 vote Thank Flag Link Thu Aug 23, 2012
Yes Lakisha, rates are inching up. Still historically low, at or below 4%

1 vote Thank Flag Link Thu Aug 23, 2012
Yes, for the 4th straight week it has gone up. Currently at 3.66%.\

1 vote Thank Flag Link Thu Aug 23, 2012
Hi Lakisha,

Right now, today, no. As our economy recovers; yes, most likely (we are 4.65 million jobs lower than our 2008 high before the crash right now). When we talk about mortgage rates the only thing "Fixed" is everything is "Variable" (pun intended)! Mortgage rates are continually influenced by the news of the world and the fiscal/economic policies of our and other nations.

If you are interested in how mortgage rates "work" review these two 2-pagers:

Here's an example on using the Fannie Mae 3.5% Coupon pricing chart to show how on a daily basis rates are being influenced: http://www.mortgagenewsdaily.com/mbs/charts.aspx?Product=FNM…


If you are a serious Buyer; or, a Seller who wants to understand how to pick the strongest financed offer please see: http://www.Steven-Anthony.com/GettingStarted

Best Regards, -Steve
0 votes Thank Flag Link Thu Aug 23, 2012
Yes, the bond market has been getting hammered for 2 weeks now and rates are up probably close to 1/2 %. I should point out that they are still very good- well under 4% for a conforming fixed rate loan. It's also likely that we'll see them again settle down a bit in the next few months. I would not expect them to go dramatically up or down.
0 votes Thank Flag Link Thu Aug 23, 2012
For weekly interest rate updates and also weekly market reports check out my Santa Clara county real estate blog at http://bayareaconnect.com/category/fridays-financial-update/
0 votes Thank Flag Link Thu Aug 23, 2012
Yes, on a recent re-fi a month ago, someone qualified for 3.5% on a 30 yr. fixed but that same loan product would be about 3.75% today.
0 votes Thank Flag Link Thu Aug 23, 2012

Mortgages are the lowest that they have been in over 60 years.

There is only one way for mortgage interest rates to go and that is up.

Also, with all of the excessive spending by The United States Government, very high rates of inflation and interest rates will also be coming in the near future.

We had similar economic circumstances in the late 1970s We had enormous amounts of excessive spending by The United States Government. That was followed by double digit inflation and double digit interest rates.

The economic circumstances that we are experiencing today remind me of the economic circumstances of the late 1970s and I expect that we will have similar levels of inflation and interest rates in the near future.

In fact I completed my Masters Degree In Business Administration in 1977.

In my Macroeconomics class our professor focused on predicting the Gross National Product, Inflation and interest rates in the next few years. One of our assignments was to use existing Public Information and information in government documents was to predict the Gross National Product, Interest rates and inflation in the next few years.

We kept kept producing results that were then unthinkable and unimaginable. We kept coming up with rates of predicted inflation at levels approaching 30% per year and interest rates of 20% per year in the near future..

It was very interesting to see several years later those predictions came true.

The current economic environment today is remarkably similar to the economic environment of 1977.

I expect that we will see inflation rates and interest rates similar to those of the late 1970s and early 1980s in the next few years.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
0 votes Thank Flag Link Thu Aug 23, 2012
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