Don Maclary -…, Real Estate Pro in 23451

What are lenders thinking the interest rates are going to do in 2013?

Asked by Don Maclary - Realtor* ABR*, 23451 Mon Jan 14, 2013

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I am often asked where I think interest rates are going. There was once a time when I actually felt confident in making short term projections about the direction of mortgage interest rates at 30, 60 and in some cases 90 days at time. That has all changed. It used to be that one could reasonably track fundamental economic trends and hence the direction of mortgage interest rates by closely monitoring economic indicators. That is still true to an extent. That issue now is you cannot reasonably know what the Federal Reserve and Federal Open Market Committee (FOMC) is going to do from day to day in their activities in the purchasing of mortgage backed securities. If you really need to know what is going on with the direction interest rates go and sign up for a limited time offer free trail of the MBS Highway There Barry Habib will at least give you an idea of what rates are doing for the next few days possibly weeks. A bit of Trivia Barry is the author and of The concept of reading the markets is as such. If you think the economy is recovering and quickly you want to lock in now for ever keep your interest rate and sanity. If you think we are still a long way off from an economic recovery then you should as we say float your interest rate with the market. So now you now the question about the direction of rates are tied to the direction of the economy. . . There is an old saying in fixed income securities trading - that is mortgage backed securities. When you want to play to win! Play to the perception and not necessarily the reality of the markets. What that means is you could be 100% correct with your analysis of the direction of the economy, but be in direct opposition of the intentions of the Federal Open Market Committee or the traders on the exchange floors. Being on the wrong side of the FOMC and or the traders on the floor could cost your dearly. If you want to discuss in more detail please contact me directly at (757) 652-5851.

Robert H. Ashburner, Jr. NMLSR 607856
Monarch Mortgage
2809 South Lynnhaven Road, Suite 200
Virginia Beach, Virginia 23452
(757) 652-5851
0 votes Thank Flag Link Tue Jan 15, 2013
The rates look good through 2014. Being I am a Realtor and not a mortgage lender. I leave this to the experts. We have a lender we use that keeps us informed.
Check out this article give to me by our in-house lender.…

He also stated the following "This quote from the article sums it up in short, however it will be a good idea to read through it in its entirety as this is extremely important information. “Yesterday the 10-yr T-note's yield closed at 1.90%. What the heck happened? What happened was that the Federal Reserve released the minutes from its last Open Market Committee meeting, and although 12 voting members thought the bond purchases would be warranted through the end of this year others felt the purchases should be slowed or stopped altogether before the end of 2013. This group was concerned that too much bond buying by the Fed might destabilize the economy. Federal Reserve policy makers said they will probably end their $85 billion monthly bond purchases sometime in 2013, with members divided between a mid- or end-of-year finish”. This is an indication that we may have seen the floor level of interest rates and an increase is in our future."

I hope this helps.

Ginny Dunmire, ABR, CDPE
REALTOR, U.S. Navy (Retired)
0 votes Thank Flag Link Mon Jan 14, 2013
I think we're going to be good to go throughout 2013. 2014 midterm elections are going to be very interesting and might influence them next year. These rates are enabling many first time homebuyers to get in the game at the best possible time, while at the same time crushing baby boomers depending on their fixed income investments. My suggestion to the later would be to find a good Realtor to help them capitalize on the tremendous cash flow investments available in today's market.
0 votes Thank Flag Link Mon Jan 14, 2013
The Fed had made the announcement to keep rates low through 2014, but I found this article from September 2015 saying NOW they expect to keep rates low through mid-2015.
KK German, Wainwright Real Estate
0 votes Thank Flag Link Mon Jan 14, 2013
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