Financing in 11204>Question Details

Michael, Home Buyer in Brooklyn, NY

Will the mortgage interest rates continue to rise?

Asked by Michael, Brooklyn, NY Mon Jul 21, 2008

The past week, the interest rates continue to rise. The seller's counter offer is doable for us but I am worried that the rates will continue to rise. Will the rates continue to climb past 6.750%?

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Your horizon (if you're in price negotiations right now) that its really impossible to predict. A few companies allow you to lock in with rate improvement, so if the rate comes down, you can re-lock at the new rate. I believe you can only do this once though. Long term, inflation is out of control, credit is still hard to get, and the spread between the 10 year treasury and mortgage rates is still extremely high compared to historical standards. So the fed funds rate will almost surely rise in the next 6-12 months, mortgage interest rates will probably follow that rise although likely at a slower pace, but that is not certain. Good luck and worry more about your purchase price and less about rates. Interest is tax deductible, and you can refinance at a later time if rates drop again. You're purchase price is forever.
2 votes Thank Flag Link Tue Aug 19, 2008
It has been said that interest rate is bottom down but market is going up now that is the sign that interest rate may go up.
0 votes Thank Flag Link Wed Oct 3, 2012
No one knows. It is best to just continue to monitor rates with your lender. You can always do a long term lock if you are afraid of rates rising.
0 votes Thank Flag Link Fri Aug 22, 2008
Rates could go up or down. It is hard to say right now in this market. It is very volitile.
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0 votes Thank Flag Link Mon Aug 18, 2008
Its very likely rates will continue to rise. It is also likely that in the coming months acquiring financing will become more of challenge. Many bank offered programs are changing or have disappeared. If you are comfortable with the offer, go for it. Start enjoying your new home ASAP.
0 votes Thank Flag Link Thu Aug 14, 2008
the rates will continue to rise more than likely. If you are on the fence on buying home and are waiting for the price of homes to drop you will be spending more money in the long run.
0 votes Thank Flag Link Wed Jul 23, 2008
The market has a mind of it's own and no one can predict with sucess.
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0 votes Thank Flag Link Tue Jul 22, 2008
Rates most likely will go up a bit. It's more likely they'll go up than they'll go down. (For instance, the Fed is getting increasingly concerned about inflation and does have the tools--through higher rates--to address inflationary pressures.) However, recognize that no one has a crystal ball, so that's only a guess.

Hope that helps.
0 votes Thank Flag Link Mon Jul 21, 2008
Don Tepper, Real Estate Pro in Burke, VA
Micheal there are too many forces acting on the markets for anyone to predict where interest rates are heading. Oil prices, inflation, financial markets unrest and foreclosure rates are all playing a part. All year long we've been playing a seesaw battle with rates so chances are they will rise and come back down within a month but don't expect to see 5% anytime soon. 30 year fixed rates at 6.5% is still very good.
0 votes Thank Flag Link Mon Jul 21, 2008
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