With a resesion looming/here, will the mortgage rates walk up or down?
Some say because less will entail it they will stay low even go lower. What do you think over the subsequent 5 yrs?
Answers:
What the Fed does with short residence interest rates has nothing to do near mortgage interest rates.
The Fed has lowered its discount rate twice recently and mortgage interest rates own gone up in the past weeks. Source(s): Oregon Realtor
I hear the fed may be lowering the rate again so rates will follow.
The usual path out of a recession is to lower interest rates (federal reserve rate) to spur growth.
The federal reserve interest rate is NOT directly tied to mortgage rates (they usually trend with the 10-year bond), but they do follow alike GENERAL trend.
Unfortunately there are two problems with lowering rates to spur growth. One is rates are already relatively low (look at a 20 or 30 year chart to see what I mean). The second is the illustrious price of oil. The high price is cause other prices to rise rapidly, causing inflation which is usually controlled by increasing interest rates. The feed a tough road to walk right now, paired inflation fighting with want to stimulate growth.
Looking out 5 years it is difficult to see anything but higher (and possibly significantly) higher interest rates for mortgages (again, look at the historical trend right immediately, very low).
good luck!
Related Questions:
How to find a best mortgage lenders, contained by jargon of rate, tax and service?
I am a first time home buyer. I am seeing lot of adv of mortgage lenders in bakerate.com. How do I know those companys are good surrounded by terms of rate, fee and service? Is in that any review...
Answers:
What the Fed does with short residence interest rates has nothing to do near mortgage interest rates.
The Fed has lowered its discount rate twice recently and mortgage interest rates own gone up in the past weeks. Source(s): Oregon Realtor
I hear the fed may be lowering the rate again so rates will follow.
The usual path out of a recession is to lower interest rates (federal reserve rate) to spur growth.
The federal reserve interest rate is NOT directly tied to mortgage rates (they usually trend with the 10-year bond), but they do follow alike GENERAL trend.
Unfortunately there are two problems with lowering rates to spur growth. One is rates are already relatively low (look at a 20 or 30 year chart to see what I mean). The second is the illustrious price of oil. The high price is cause other prices to rise rapidly, causing inflation which is usually controlled by increasing interest rates. The feed a tough road to walk right now, paired inflation fighting with want to stimulate growth.
Looking out 5 years it is difficult to see anything but higher (and possibly significantly) higher interest rates for mortgages (again, look at the historical trend right immediately, very low).
good luck!
Related Questions:
How to find a best mortgage lenders, contained by jargon of rate, tax and service?
I am a first time home buyer. I am seeing lot of adv of mortgage lenders in bakerate.com. How do I know those companys are good surrounded by terms of rate, fee and service? Is in that any review...