Polly, Other/Just Looking in Wellesley Hills, MA

Does anyone have an educated guess as to when the interest rates and home prices are going to start to rise?

Asked by Polly, Wellesley Hills, MA Fri Jul 3, 2009

again in general and, specifically, in the Boston/Metro-West area?

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Voices Member’s answer
Polly,

Perhaps some of the sources may help you form a general idea...

http://mortgage-x.com/general/rate_trend.asp ... survey of over 250 lenders/updated weekly on rate trends

http://mortgage-x.com/x/search.asp ... some current rates offered

Rate trends .... http://mortgage-x.com/trends.htm ... http://mortgage-x.com/general/historical_rates.asp

http://ml-implode.com/ .... http://www.fhfa.gov/
0 votes Thank Flag Link Mon Jul 6, 2009
Hi Polly- Everything is very localized- down to the town/ city and sometimes even to the neighborhood within a town- as far as pricing trends, etc.
For greater Boston area, I think you are looking at next Spring (2010) before prices stabilize- meaning they stop declining. After that, the price increases will be very slow. That is what most experts believe.
For interest rates, I'm in the biz and we had 3-4 months of very low rates- 4.875%, etc- that are gone now. Who knows if they will be back. I tend to doubt it. Average mortgage rates over the past 15-17 years is over 7.25%. That's the average. Many months were higher than that.
So, based on history, I would assume rates will trend higher as we proceed. By the time home prices stabilize, rates will probably be higher than today. Maybe by quite a bit. All that said, might be worth buying a place sooner than later.
If I can be of any help, please let me know. Thanks, and good luck,
Ken L.
0 votes Thank Flag Link Mon Jul 6, 2009
Interest rates have already started to rise, and, in some partsof the country, prices have leveled out or started up. Until the unemployment numbers start to improve more dramatically, neither prices nor interest rates are going to skyrocket, and both my dip further temporarily. It is very important not to make a home purchase decision based on trying to time the market -- at least not to the tee. What you need is a home, not theoretically best deal.

Consult a real estate agent who knows home prices in the area you want to buy because, after all, all real estate is local. Below is a link to a post about my local market, but it contains some general advice about the decision confronting you.
0 votes Thank Flag Link Sun Jul 5, 2009
Greetings Polly,
There were many economists who predicted the real estate bubble would burst and that must have been a helium filled hot air balloon because the POP has been heard around the WORLD!!

Unfortunately there are a group of people who get together every couple of years under newsworthy protests (G8 Summit) who would be more qualified to give you a direct answer than any of us commoners.

Unemployment is still rising, foreclosures have not yet bottomed out, GM - the company that had a number of employees second only to the US Government has screamed Uncle and people are AFRAID.

The only thing that you can truly do is TRUST YOURSELF and make as informed a decision as the information available to you.

None of us KNOW what is going to happen.

Good Luck,
0 votes Thank Flag Link Fri Jul 3, 2009
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