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Eddiewelder, Home Buyer in Menifee, CA

I herd interest rate will be going down to 2.50 is this true

Asked by Eddiewelder, Menifee, CA Tue Oct 2, 2012

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5
Good afternoon Eddiewelder,

I've been a Mortgage Banker for 23 years. There is not one person anywhere who can predict future interest rates. If you'd asked me in 1989 if I ever thought interest rates could be as low as the 3's and 4's we're seeing today I'd have looked at you funny but I would have said the same thing: no one can predict the market.

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Wed Oct 3, 2012
There's not a single Realtor on this site, nor any economist in the country who can answer your question with any degree of accuracy.
0 votes Thank Flag Link Wed Oct 3, 2012
Alan May, Real Estate Pro in Evanston, IL
MVP'08
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If it were possible to predict where mortgage interest rates are headed then that person could make a killing in the bond market.

2.5% seems exceedingly low. Investors would demand greater yields (even 3.5 percent, after bearing through risks, seems a paultry sum by historic standards).

The Federal Reserve Bank's QEIII initiative may be able to push rates just a little bit lower (by flooding bond markets with cash) but its doubtful whether 2.5% would ever come to fruition. Bear in mind that even if rates went down to 3 percent, a flood of new applicants looking to refinance their properties would quickly push the rates back over that threshold.
0 votes Thank Flag Link Tue Oct 2, 2012
I have spoken with many direct lenders over the past 5 days and they don't expect 30 year fixed loans to decrease below 3.0% - 3.25%. If you are open to other loan products you will definitely be able to obtain a conforming loan (up to $417,000) under 3.0%.

Now is the time to take advantage of historic record low home mortgage rates.
0 votes Thank Flag Link Tue Oct 2, 2012
I have spoken with many direct lenders over the past 5 days and they don't expect 30 year fixed loans to decrease below 3.0% - 3.25%. If you are open to other loan products you will definitely be able to obtain a conforming loan (up to $417,000) under 3.0%.

Now is the time to take advantage of historic record low home mortgage rates.
0 votes Thank Flag Link Tue Oct 2, 2012
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