Home Buying in East Corona>Question Details

Anil Lall,  in Forest Hills, Queens,...

In the near future the interest rates will go down or will go up?

Asked by Anil Lall, Forest Hills, Queens, NY Mon Aug 24, 2009

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As some of posted with regards to their crystal ball, nobody knows what is going to happen. But we do know about events that may effect the 10yr treasury. This is a strong correlation to where mortgage rates are going. All things constant, unless the fed decides to continue there bond buying program, inflation rights itself before it becomes a problem, people continue losing jobs and corporate earnings diminish, rates will go up. if it was not for govt intervention rates would already be higher. they are artificially keeping them lower to stimulate the economy. they are also not helping inflation in doing so.
0 votes Thank Flag Link Wed Apr 13, 2011
in june the fed's will stop buying up treasury bonds and as inflation weighs more on our economy the rates are sure to go up! This does not fair well for home prices!
0 votes Thank Flag Link Wed Apr 13, 2011
I'd love to give you an answer on the interest rate question, but my crystal ball is out of order. Check back soon.
Web Reference: http://www.zweedle.com
0 votes Thank Flag Link Tue Apr 12, 2011
Nobody knows the answer to that question, although many will give you an opinion. There is much wasted energy on this topic relating to real estate. Traders who make their living trading bond futures on a daily basis end their day with no exposure to interest rate changes. Why? Simple, they don't want the overnight risk because they absolutely do not know if interest rates will be higher or lower the next day.

Here is good advice. Find a home you like and can afford at todays rates. If you will be there short term (3-7 years), consider a 5 or 7 year ARM. If you expect to be there longer than 7 years, go with a 30 year fixed rate mortgage. Don't get caught up in day to day changes in rates. If $20 per month is going to put you over the edge, then you should be looking at a home that is more affordable.

If rates fall, you can refinance and lower your payment. If they rise, you'll be glad you bought when you did and didn't wait until rates got lower. It's really pretty simple.
0 votes Thank Flag Link Mon Aug 24, 2009
Have you seen this Rate Trend Survey? It is a survey of over 250 lenders and is updated weekly...

Not saying it's anything more than interesting.............
0 votes Thank Flag Link Mon Aug 24, 2009
I only bet once a year in Atlantic City, but if you want my educated guess, I'd say neither. Give or take 1/2 a percentage point, this is where we'll be for the duration of the recovery, then up.
0 votes Thank Flag Link Mon Aug 24, 2009
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