Mortgage Rates Going Up or Going Down?
July 10th, 2009 categories: For Buyers
I continue to be amazed by the number of emails wanting to know my take on mortgage interest rates.
Forecasting mortgage rates is a full time job!
And as I have replied to individual emails, I don’t think anybody has a clear cut handle on the future of rates. This much is true (probably):
- Rates below 5% (spring 2009) were articificially low and we probably won’t see rates that low again.
- Mortgage rates continue to bounce up and down slightly on a daily basis – but are staying at or below 6%
- Stock market, oil prices, consumer confidence all impact interest rates
- A second stimulus package could impact rates
- Progams may have an impact-first time home buyer incentive be extended or other incentives be added
If you are thinking about purchasing real estate remember that while housing inventory remains high, prices remain lower. Home/condo sales are picking up in West Chester, Fairfield, Mason and greater Cincinnati and when the inventory shrinks the market becomes more balanced.
Waiting for lower interest rates may cost you more if housing prices increase.
Bottom line -rates are still low and I think they will probably stay below 7% through the next several months. Qualified buyers (good credit scores) will continue to get better interest rates. Inflation and other economic issuues will continue to impact real estate and I will revisit the subject next month.
Related Articles: “Here Come Higher Interest Rates” by Shawn Tully
“Second thoughts on how long mortgage rates will go” by Alan J. Heavens
“Mortgage Rates Inch Down for Third Consectutive Week…..” from PRNewswire
“The Home Front” by Luke Mullins
“Mortgage Rates Still Uncertain of Economic Outcomes” by Victor Burek
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