Will Mortgage Rates Go Down To 4%?
I heard that mortgage rates might get down to as low as 4% contained by 2009. Any truth to that?
Answers:
Anything is possible in the current open market...but that rate is going to the people with the BEST credit evaluation. Any blemish will drive the interest rate up.
More interesting is that the market has not on the other hand bottomed---which will control the prices.
I suspect in 2-3 three years, you'll be able to purchase a total lot of house, compared to today.
i suppose anything is possible but i doubt it. the lenders still own to have some margin for profit and the fed's rate is already bottomed out. however, prices may still be heading down and your giving for the same house next year would be lease because the attraction has dropped.
This is HIGHLY unlikely and here a some reason why.
The U.S. government is buying the WRONG mortgage back securities to support mortgage rates of 4.5% - STRIKE ONE FOR LOWER MORTGAGE RATES
oContinued asset price (housing prices) deflation is bad for mortgage rates because investors are worried about deteriorating collateral - STRIKE TWO FOR LOWER MORTGAGE RATES
oIf the cutback were to begin to recuperate, the surge in demand voted through adjectives of the extra dollars that we just printed and pumped into the system will most likely be significantly inflationary - STRIKE THREE FOR LOWER MORTGAGE RATES.
oSince there are fewer lenders not here, and investors are scared to death, everyone is demanding a complex return on capital to justify the investment. Hence, lenders aren't ratification on all of the lowering in mortgage-backed securities rates to the consumer - they are filling their margins and building loan loss reserves. STRIKE FOUR FOR LOWER MORTGAGE RATES.
oForeign investors, China in particular, are getting cold foot when it comes to purchasing our debt. They can see the printing press is glowing red-hot and we aren't doing so well. STRIKE FIVE FOR LOWER MORTGAGE RATES.
oIf the stock bazaar were to suddenly turn around and rally, that would craft equities an attractive investment relative to fixed income investments such as mortgage bonds. The money going into the stock market has to come from somewhere, and one of those places could particularly well be from the funds already committed to the mortgage markets. STRIKE SIX FOR LOWER MORTGAGE RATES.
Anything is possible, but I would say no. You still can buy your rate down to 4% if you like.
Related Questions:
Does mortgage broker enjoy to bestow a reminder after the RATE is LOCKED ?
Mortgage Interest Rate?
Refinancing a mortgage beside an already low interest rate.?
How do you hold on to track of interest rates for adjustable rate mortgages?
Econ Question, housing prices/mortgage rates?
Answers:
Anything is possible in the current open market...but that rate is going to the people with the BEST credit evaluation. Any blemish will drive the interest rate up.
More interesting is that the market has not on the other hand bottomed---which will control the prices.
I suspect in 2-3 three years, you'll be able to purchase a total lot of house, compared to today.
i suppose anything is possible but i doubt it. the lenders still own to have some margin for profit and the fed's rate is already bottomed out. however, prices may still be heading down and your giving for the same house next year would be lease because the attraction has dropped.
This is HIGHLY unlikely and here a some reason why.
The U.S. government is buying the WRONG mortgage back securities to support mortgage rates of 4.5% - STRIKE ONE FOR LOWER MORTGAGE RATES
oContinued asset price (housing prices) deflation is bad for mortgage rates because investors are worried about deteriorating collateral - STRIKE TWO FOR LOWER MORTGAGE RATES
oIf the cutback were to begin to recuperate, the surge in demand voted through adjectives of the extra dollars that we just printed and pumped into the system will most likely be significantly inflationary - STRIKE THREE FOR LOWER MORTGAGE RATES.
oSince there are fewer lenders not here, and investors are scared to death, everyone is demanding a complex return on capital to justify the investment. Hence, lenders aren't ratification on all of the lowering in mortgage-backed securities rates to the consumer - they are filling their margins and building loan loss reserves. STRIKE FOUR FOR LOWER MORTGAGE RATES.
oForeign investors, China in particular, are getting cold foot when it comes to purchasing our debt. They can see the printing press is glowing red-hot and we aren't doing so well. STRIKE FIVE FOR LOWER MORTGAGE RATES.
oIf the stock bazaar were to suddenly turn around and rally, that would craft equities an attractive investment relative to fixed income investments such as mortgage bonds. The money going into the stock market has to come from somewhere, and one of those places could particularly well be from the funds already committed to the mortgage markets. STRIKE SIX FOR LOWER MORTGAGE RATES.
Anything is possible, but I would say no. You still can buy your rate down to 4% if you like.
Related Questions: