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Are Interest Rates Headed UP for 2009?
I was rather surprised that with all the mortgage guys in the Rain, I couldn't find any current blog on where they think our interest rates are headed. I have a bad feeling that it's possible we're headed back to the days of 10%+ rates and if that's possible, personally I'd like to start preparing for how I'm going to deal with that now.
Here's a historical interest rate chart, courtesy of Mortgage-X.com http://www.mortgage-x.com You can clearly see how long rates were above 10%. I don't relish those days again.
So for the Rain Brains of the Financial Market out there...just where do you really think we're headed and why? |
I have been a Real Estate Broker for some 33 years in the Little Rock Metro area and have pretty much worked in all phases of the industry including managing some 6,000 units of multifamily property.
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Bankrate.com has the same question posted at: http://www.bankrate.com/brm/static/rti.asp. This week, two-thirds of the panelists believe mortgage rates will fall over the next 35 to 45 days. One-fifth of the panelists believe rates will remain relatively unchanged (plus or minus 2 basis points), and the rest think they will rise. Personally, I think that interest rates will remain stable over the next 90 days. However, I believe that interest rates will rise over the next 12 months. But, a dartboard would probably be as accurate as the pundits.
Panel:
13%
67%
20%
As to the "how to prepare" part of the post, I would suggest that we manage the uncertainty by pointing out the simple fact that we don't know what will happen and the safest and most predictable time to purchase and lock in your interest rate is now.
THANK YOU Ryan for that valuable information. I lean towards your conclusion as well. And YES...NOW is definitely the time to BUY!