Will the interest rate rise up soon?

Asked by pam, 95148 Mon Jun 4, 2012

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13
Scott Ellwood, , Solana Beach, CA
Mon Jun 4, 2012
Hi Pam,
Obviously nobody really knows the answer to this. As economic and political tides ebb and flow, so do the money markets and therefore interest rates. But I can tell you that there are many inflationary pressures looming on the market. Most all signs point to rising rates not too far off in the future. But so far, the turmoil in Europe and the US federal government's support of the bond market, has kept rates low. My personal "expert" opinion is that we should continue to see fairly low rates at least until the presidential election. Then sometime around the 2nd or 3rd quarter of next year they may not be able to hold rates back from rising any longer, although there will be political pressure to do so. With that said, as I type this, we are at an new 40+ year low for mortgage rates. And that likely won't last much longer than a month or two, if that.
2 votes
charles butt…, Agent, san jose, CA
Wed Jun 6, 2012
I recommend John Arendsen for best answer. That is brief and to the point in only two words.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
.
1 vote
John Arendsen, Agent, Leucadia, CA
Wed Jun 6, 2012
In two words...................................HELL YES!!
1 vote
Rene' De Bla…, , San Diego, CA
Wed Jun 6, 2012
I don't think so. The bond market does not like what is happening in Europe so we should remain pretty flat, and perhaps even go a little lower.
1 vote
Terri Vellios, Agent, Campbell, CA
Wed Jun 6, 2012
I wish I could predict the future. All I can do is make decisions today based on the information from the past and what information is available today.

I agree that eventually the interest rates should go up. When, and how much we really don't know. Lenders change their policy and rates so as said if they go up 1% that affects a buyer buyer by 10% in what they will qualify for, or they will have to make more money.

If you are thinking of buying, have a sit down with a trusted real estate Agent/Broker and Lender and get the information you need so you can make an informed decision if today is the right time to buy.

Have an amazing day!
Web Reference:  http://www.terrivellios.com
1 vote
Bill Phillips, Mortgage Broker Or Lender, San Jose, CA
Mon Jun 4, 2012
Pam, interest rates for mortgages hit the lowest they have EVER been last week. However, today they are up slightly from Friday. It is unlikely that within a range of .50% in rates, rates will be rising anytime soon (by the end of this year). That being said, what I like to talk about is Purchasing Power. If rates were to rise by 1%, which they did last Spring, and you were qualified for a $500,000 purchase with a 4% rate, you would only be able to buy a $450,000 home using a higher rate of 5%. A $50,000 loss of Purchasing Power! So it is important to understand this dynamic and not put off a home purchase too long. I provide my clients a very inforamtive "After Tax - After Savings" Rent Comparison that you may find helpul as well. Let me know if I can help you furher.

Bill Phillips
First Priority Financial Silicon Valley
(408) 957-7600
http://www.TrustedLoanAdvisor.com
1 vote
Perry Campbe…, Agent, San Jose, CA
Mon Jun 4, 2012
The honest answer is nobody really knows.Buy today while rates are low.
1 vote
John Hanson, Agent, San Jose, CA
Mon Jun 4, 2012
I love the first response.. sounds like he is running for election.. can't loose on that one..

If you follow the world economy trends it looks like we should have a "cool" growth for the next couple of years.. things are not going well in many places and the feds have said they will not move rates if things stay about the same as they are now.
So my guess is, "and that is really all there is", that it will stay low for a while and then when things begin heat up we will see rate increases.. one to two years out.

Do make financial decisions based upon what you have in hand not what may or may not come down the road. Loans like the stock market can always be on the move .. up or down as stated by " the expert"
1 vote
Bob Willett, , Sacramento, CA
Mon Jun 4, 2012
My prediction is that rates will either go up or come down. I just don’t know by how much or when.
Web Reference:  http://www.SacRELender.com
1 vote
Ruth and Per…, Agent, Los Gatos, CA
Sun Jun 17, 2012
Hi Pam

It all come down to whether you are referring to a 1/8 or 1/4 % in increase or a 0.5% or 1%
increase.

Rates should remain below 4.25% for a 30 year fixed for a while, there are also rumors of further easing due to the European crisis.

If you are looking to buy it is a great time to buy, if you are looking to refinance you should refinance at zero cost, and should rates go down further, then refinance again.

If you have paid no Costs when refinancing, then you can Refinance again.

Good luck.
Perry
0 votes
John Juarez, Agent, Fremont, CA
Tue Jun 5, 2012
Interest rates will eventually rise. They are so low now, that up is the only direction in which they can go. And yet…rates have fallen in the last week because of concerns about European financial weakness.

Rates are unpredictable. When rates eventually do move up, and they will…who knows when and by how much? No one does!

The Fed says rates will remain low through 2014. Now there is talk of possible new Fed action stimulate the economy. I guarantee that does not mean the Fed will raise rates at this time.
0 votes
Jinaye Conley, , Saratoga, CA
Mon Jun 4, 2012
Pam,

Is this the same Pam who we have been communicating with all week?

Logically, rather than doing this piece by piece allow my team of professionals to assist you. If you need a fluid question and answer period with a knowledgable group of economic minds to place you at ease give me a call.

Answer: There is no indication that the Federal Reserve Banks FRB have any logical reason to adjust interest rates.

As explained previously, the economic indicators worldwide do not support an optimistic view. It pains me to see other real estate representatives in this forum suggest otherwise. If one truly studies, local, regional, national and international business models the future holds challenge.

Historically, interest rates remain static in an election year.

There is more to cover but in the short answer version interest rates will not increase over the short term.

I do hope this helps your decision making process.....Call me to discuss your needs.....

Jinaye

408-497-6528
0 votes
charles butt…, Agent, san jose, CA
Mon Jun 4, 2012
The Federal Reserve says that they plan to keep interest rates low through 2014.

However there is a great deal of upward pressure on interest rates, so I would not be surprised if that changes. Please call me at my cell phone (408)509-6218 for more information.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
.
0 votes
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